Brazil’s equivalent of the U.S. Securities and Exchange Commission, the Comissão de Valores Mobiliários (CVM), has blocked leading cryptocurrency exchange Binance from offering derivative products in the country.
According to an order published July 6, reported on by local news outlet Portal do Bitcoin, Brazilian regulators claimed derivative contracts are securities, regardless of whether the underlying assets are cryptocurrencies.
The order reads,
It remains evident that there are indications that the company BINANCE FUTURES, through the page '”www.binance.com” on the world wide web, captures customers residing in Brazil with a public offering of derivative intermediation services.
The order continued, adding that Binance “does not hold authorization” to act as an intermediary for securities in the country.
The CVM determined that Binance must immediately suspend the “broadcasting of any public offering of securities intermediation services,” including derivatives products or else face a daily fine of R $1,000 ($186).
The order fails to clarify whether Binance’s spot trading services will continue to be allowed to operate in Brazil, as opposed to only banning their derivative offerings.
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