- Brazilian authorities are currently investigating Binance.
- Futures contracts are classified as securities under Brazilian law.
- Binance stated that it operates in compliance with local regulations.
According to recent reports from the Brazilian newspaper Valor Econômico, the Brazilian authorities are investigating Binance. However, Binance has been in the spotlight lately due to regulatory concerns in several countries. The company has been accused of not complying with local regulations.
Crypto exchange #Binance under investigation by Federal Police in Brazil.
— whalechart (@WhaleChart) April 20, 2023
According to the reports, Binance has allegedly aided its users in evading a stop order on cryptocurrency derivatives investments. Significantly, this action violates local regulations, and the Brazilian authorities are investigating further.
The Brazilian Securities and Exchange Commission (SEC) accused the Binance exchange of offering digital assets derivatives even after the regulatory body ordered it to stop such offerings. The SEC has referred the case to the attorney general of the state of São Paulo.
Binance Assures Compliance With Regulations
Following Brazilian regulations, Futures contracts are classified as securities under Brazilian law, regardless of the nature of the underlying assets. This means that any platform or exchange offering such contracts must comply with the regulatory framework put in place by the Brazilian authorities.
Failure to comply with these regulations may result in penalties or legal action being taken against the platform or exchange.
Binance provided a statement to the newspaper stating that it complies with the local regulatory environment. Additionally, it also maintains a permanent dialogue with authorities to promote the development of the crypto and blockchain industry in Brazil and globally. The statement also reiterates that Binance does not offer derivatives in Brazil.
Recently, Voyager reported that the Unsecured Creditors Committee (UCC) had agreed with the U.S. government, allowing Binance’s purchase plan to proceed. Consequently, this news comes after the ongoing legal proceedings involving Voyager and its bankruptcy case.
The agreement represents a significant milestone for Binance and paves the way for the acquisition.
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