Binance Exchange is making significant headway in Latin America after it resolved its years-long regulatory strain with the Brazilian SEC. The trading platform, known for its extensive industry reach, has recently been righting its wrongs with regulators in different countries.
The Binance and Brazilian SEC Brawl
Back in 2020, the country’s regulator, also known as CVM restricted the trading platform from carrying out derivatives offering. It accused the exchange of operating without proper authorization and even threatened to levy a daily fine of 1,000 reais. Following this indictment, the regulator announced that Binance has agreed to pay the sum of 9.6 million reais or approximately $1.75 million.
This fee is a settlement for offering derivatives trading services in the Latin American country without authorization. The leading exchange’s decision to pay the fine followed the presentation of an initial proposal for a Term of Commitment and some negotiations with the committee in charge.
Noteworthy, the top trading platform offered the CVM 2 million reais, approximately $370,000, in August 2023. However, the regulator rejected the settlement at the time. Brazilian SEC claimed that the crypto exchange is involved in the “distribution and mediation of operations with securities offered to citizens residing in Brazil.”
The core challenge is that Binance is not a member of the securities distribution system. Therefore, it failed to obtain the required registration and licence or even a registration exemption from the regulator.
Binance Seeks to Comply With Regulations
This settlement underscores a related breakthrough the exchange recorded in India. The crypto firm strived to comply with the Financial Intelligence Unit (FIU) in the Asian nation after paying a $2.25 million fee. This addressed the firm’s shortcomings in relation to adhering to India’s Anti-money Laundering (AML) regulations.
As reported earlier, the exchange’s URL was unblocked in India after it eventually completed its FIU registration. Binance’s proactive approach to operating within the legal framework should set a positive sentiment toward the cryptocurrency topic in India and now Brazil.
In the long run, it may contribute to attracting a massive inflow of potential users. For now, these moves underscores Binance’s intentionality towards navigating the complex regulations prevalent in different jurisdictions across the globe.
It could even set precedence for other crypto exchanges as they venture into different regions.
The post Just In: Binance Hits Major Regulatory Breakthrough In Brazil appeared first on CoinGape.
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