Binance to pay $1.7 million fine in Brazil for trading violations
Binance’s global regulatory woes continue with the latest episode happening in Brazil where the largest crypto exchange in the industry is expected to pay a fine of $1.7 million for derivatives trading violations.
Binance will be paying $1.7 million to the Brazilian Securities and Exchange Commission (CVM) as a settlement following an investigation into its unauthorized derivatives trading in the country.
The development was announced by CVM via an official statement on its website spelling out the details of the case and the amount Binance is expected to pay.
“ The Board of the Securities and Exchange Commission (CVM), in a meeting on 8/13/2024, analyzed proposals for the Term of Commitment of the following administrative sanctioning processes (PAS):
PAS 19957.008369/2022–11: B Fintech Technology Services Ltda.
PAS 19957.008992/2023–47 : Gafisa SA, Guilherme Augusto Soares Benevides and Ian Masini Monteiro de Andrade.
B Fintech Serviços de Tecnologia Ltda presented a new proposal for a Term of Commitment to terminate PAS CVM 19957.008369/2022–11.
In a meeting held on 8/29/2023, the CVM Board decided to reject the agreement with B Fintech Serviços de Tecnologia Ltda, as it understood that the execution of the Commitment Term would not be timely and convenient.
On 2/15/2024, a new proposal for a Term of Commitment was presented, and, after negotiations with the Term of Commitment Committee (CTC), the proponent committed to pay the CVM R$9,600,000.00. The PFE-CVM concluded that there is no legal impediment to the execution of the agreement.
Therefore, the CTC considered it appropriate and convenient to accept the agreement.
The Board followed the CTC’s opinion and accepted the signing of a Commitment Term with B Fintech Serviços de Tecnologia Ltda.” CVM Stated
For context, B Fintech Technology Services Ltd. is a shell company operated by Binance in Brazil.
In May 2023, a Brazilian court recognized that the company was part of Binance Group.
