Binance Pays 9.6 Million Reais to Settle Dispute with Brazilian Securities Commission!

Binance, the giant of the cryptocurrency world, will resolve its dispute with the Brazilian Securities and Exchange Commission (CVM) by paying 9.6 million reais (equivalent to $1.76 million). The major exchange, which had been offering derivative trading services in Brazil without the necessary authorization, has finally agreed to a settlement.

In August 2023, CVM firmly rejected Binance’s initial offer of 2 million reais. However, after intensive negotiations, both parties reached a significant agreement. This settlement marks the end of a long-standing conflict between Binance and the Brazilian regulatory body.

The saga began in July 2020, when CVM issued a decisive order forcing Binance to halt derivative trading services in Brazil. Why? Because the company had boldly acted as a securities intermediary without the required authorization.

CVM warned: “Binance recklessly distributed and intermediated securities operations for Brazilian citizens without being part of the securities distribution system, lacking legal registration or even an exemption from registration.” This bold move by the company was eventually met with a firm response from the regulatory authority.

This event highlights the serious commitment of regulatory bodies to address violations in the cryptocurrency sector and could serve as a serious warning to other players in the field.