Brazil’s Securities and Exchange Commission (CVM) has ordered Binance to stop offering its derivatives products in the country.
In a Declaratory Act published on July 2nd, Brazil’s superintendent of relations with markets and intermediaries says Binance’s derivative offerings are prohibited within the country. In Brazil, derivative contracts are classified as securities even if the underlying assets are cryptocurrencies.
“The offering to the public residing in Brazil of securities intermediation services is private to institutions that are part of the securities distribution system provided for in art. 15 of Law 6,385, of December
7, 1976.”
According to the act, the exchange does not have the necessary authorization to offer securities in Brazil.
Binance must halt its derivative offerings in the country or face a fine of 1,000 Brazilian reals – approximately $186 US dollars – per day. Binance must also stop advertising its derivatives products in the country.
“The company (Binance) [must] immediately suspend the broadcasting of any public offering of securities intermediation services, directly or indirectly, including through the use of internet pages, applications or
social networks.”