The Brazilian Securities and Exchange Commission (CVM) ordered on Monday that Binance should immediately stop offering its derivatives trading services in the country. Binance in trouble?!
Binance fiat option will support 15 currencies
Regulatory issue in Brazil
In the order published on Monday, the CVM assures that derivative contracts are securities, regardless of the underlying assets, and Binance does not have the necessary authorization to operate as a securities intermediary in Brazil.
„The offer to the public residing in Brazil of securities intermediation services is private for the institutions that are part of the securities distribution system provided for in article 15 of Law 6.385, of December 7, 1976“, reads the order.
Also, as part of the warning, the CVM threatened Binance with a daily fine of 1,000 Brazilian reals, approximately US$ 186. The order was to cease immediately, however, for the time being the crypto exchange has not issued any statement.
Therefore, the problem is not the underlying assets of the derivatives offered by Binance but that the crypto exchange does not have the necessary permissions to operate as an intermediary in Brazil.
The problem with derivatives at Binance
It is important to note that the order only calls for the immediate suspension of the offer of derivatives. However, it is not clear whether the spot trading platform will also be suspended in the country.
However, one thing that is clear is that this is the first public position taken by the CVM regarding the trading of crypto derivatives in Brazil.
Therefore, the community does not really know how the recent order addressed to Binance will affect the rest of the crypto exchanges operating in Brazil.
It is also worth mentioning that recently the Central Bank of Brazil issued an order to Mastercard and Visa to stop WhatsApp payment transactions.
Even the bank warned about the imposition of fines to the operation giants in case of not complying with the order. Could it be that Brazil has decided to carry out a much stricter regulatory process?
What was discussed at the meeting between Ripple and the Central Bank of Brazil?
As we mentioned before, it seems that the order of suspension of operations of derivatives for The News Spy has nothing to do with the underlying assets, that is, crypts.
But, even so, the question remains. For the time being, Brazil has shown itself to be a country open to crypto-currencies and new technologies, but how true can this be?
Let’s remember that, in early June, Brazil’s Central Bank held a closed-door meeting with Ripple’s team. So, how true can it be that Brazil is a country open to crypto?