Brazilian authorities investigate Binance for guiding clients past stop order: Report

Binance is under investigation in Brazil by the Federal Prosecutor’s Office and Federal Police, according to a report in Valor Econômico newspaper. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.

According to the newspaper, the Brazilian Securities and Exchange Commission (SEC) reported to the Attorney General of the State of São Paulo that Binance may have continued to offer cryptocurrency derivatives to its clients after the SEC had issued a stop order on those offerings in 2020. Futures contracts are considered securities under Brazilian law regardless of the nature of the underlying assets.

The SEC presented the police with screenshots made in August 2021 showing instructions for Brazilian users to change their language setting to access the Binance Futures section. The SEC also said there was extensive Portuguese-language content with no notices of restrictions on Brazilian users.

Related: Brazilian president signs crypto bill into law

Public information seen by Valor Econômico showed that Binance responded to the charges in February by submitting a proposal for a commitment agreement. No decision has been made on that proposal.

Binance told the newspaper in a statement that it “Reiterates that it does not offer derivatives in Brazil, that it operates in compliance with the local regulatory scenario and maintains a permanent dialogue with the authorities for the development of the crypto and blockchain segment in Brazil and in the world.”

Binance has faced similar charges before. It operated in the Canadian province of Ontario for months after it told the Ontario Securities Commission it would cease activities. Binance reportedly acknowledged in February that it was working with United States regulators to settle compliance issues. In March, Binance was sued by the U.S. Commodity Futures Trading Commission over alleged trading violations.

Magazine: $54B fund partner runs women-only DAO, LatAm blockchain gaming guild

All Dutch and English crypto news!

CoinEx launches BitHK trading platform for Hong Kong users

BitHK will offer spot trading and looks to launch a P2P exchange for Hong Kong users. The exchange will submit an application for registration as a...

Laos government reportedly prioritizes blockchain technology for digital transformation

Laotian Prime Minister Sonexay Siphandone chaired the inaugural Ministerial Conference on Blockchain 4.0 Digital Transformation.

MicroStrategy is better than Coinbase for crypto exposure: Berenberg

Berenberg analysts sees upside in MicroStrategy to $340. They explain their bullish view in a recent research note. Coinbase stock has a "hold" rating only at Berenberg. MicroStrategy...

Blocktrade raises €4.5M in its BTEX Token sale

Gamified asset marketplace Blocktrade says it has raised €4.5 million in an exclusive BTEX Token (BTEX) sale. The sale attracted 1,400 community members from 42 countries. Blocktrade...

Beste exchanges

Koop je crypto bij Bitvavo