The Brazilian Securities and Exchange Commission (CVM) on Monday ordered cryptocurrency exchange Binance to immediately cease offering derivatives trading services in the country.
- CVM said in a July 2-dated declaration that Binance is not authorized to âact as a securities intermediaryâ in Brazil and threatened the exchange giant â the worldâs largest by trading volume â with a R$ 1,000 ($186) daily fine.
- Binance cannot market or offer derivative services of any type in Brazil, irrespective of the contractâs underlying asset, without CVM approval, the order said. Thatâs because Brazilian law treats all derivatives products as securities.
- Even so, Binanceâs derivatives trading portal was still accessible from Brazilian IP addresses at press time Monday. Binance did not immediately respond to a CoinDesk request for comment.
- The order is CVMâs first public stance on cryptocurrency derivatives trading, according to CoinTelegraph Brazil. It was not immediately how this move will affect other exchanges.
See also: Binance Retains Top Spot as CoinGecko Revamps Exchange Trust Metric
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