Binance Reaches Agreement with Brazil’s SEC

Binance announced on Wednesday that it has reached an agreement with Brazil’s Securities and Exchange Commission (CVM) following a lengthy restriction period.

In 2020, Brazil’s SEC prohibited the exchange from offering derivatives products, citing that such contracts qualify as securities. The regulator stated that Binance lacked authorization to act as a securities intermediary in Brazil.

The recent agreement, which involves Binance paying a fine of 9.6 million reais (approximately 1.75 million U.S. dollars), was approved by CVM and detailed in a post on their website.

A spokesperson for Binance clarified that the exchange is not currently permitted to offer derivatives in Brazil. However, they noted, “Since the regulator’s first communication to Binance in 2020, the exchange has taken all steps and necessary actions to respond to the authority and comply with local requirements.”

They further stated that the decision by CVM’s board to accept the proposed Term of Commitment confirms that Binance has made adequate adjustments and upgrades over time to meet regulatory expectations.

For more information, Brazil’s CVM has referred The Block to their website, where the decision has been published.

Update: Aug. 14, 6:15 p.m. UTC to include comments from Binance