Binance Reaches $1.7 Million Settlement with Brazil’s Securities Commission

Binance, the world’s largest cryptocurrency exchange, has agreed to pay 9.6 million reais ($1.76 million) to the Brazilian Securities and Exchange Commission (CVM) to settle a probe into its unauthorized derivatives offerings in the country. The settlement comes after the CVM previously rejected Binance’s proposal of 2 million reais ($370,000) in August 2023.

The agreement was finalized on February 15, 2024, after negotiations between Binance and the Term of Commitment Committee (CTC). The CVM confirmed the settlement in a statement released on Wednesday. The payment closes an investigation into Binance’s operations in Brazil, where the company was found to have offered derivatives trading services without the necessary licensing.

The issue dates back to July 2020, when the CVM ordered Binance to stop offering derivatives in Brazil, stating that the exchange was not authorized to operate as a securities intermediary. Binance was also threatened with a daily fine of 1,000 reais if it continued its unauthorized services.

In its settlement terms, the CVM pointed out that Binance had been involved in the “distribution and mediation of operations with securities offered to citizens residing in Brazil without being a member of the securities distribution system and without obtaining the necessary registration or exemption from registration with the CVM.”