Binance is being investigated in Brazil by the Federal Prosecutor’s Office and the Federal Police, according to a report by the newspaper Valor Econômico. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives.

According to the newspaper, the Brazilian Securities and Exchange Commission (SEC) informed the São Paulo State Attorney General that Binance may have continued to offer cryptocurrency derivatives to its clients after the SEC issued an order to suspend those offers in 2020. Futures contracts are considered securities under Brazilian law, regardless of the nature of the underlying assets.

The SEC submitted to the police screenshots taken in August 2021 showing instructions for Brazilian users to change their language settings to access the Binance Futures section. The SEC also said there was extensive content in Portuguese with no restriction notices for Brazilian users.

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Public information seen by Valor Econômico showed that Binance responded to the charges in February by submitting a proposal for a compromise agreement. No decision has been made on that proposal.

Binance told the newspaper in a statement that it “reiterates that it does not offer derivatives in Brazil, that it operates in accordance with the local regulatory scenario and maintains a permanent dialogue with the authorities for the development of the cryptocurrency and blockchain segment in Brazil and in the world.” .”

Binance has faced similar charges before. He operated in the Canadian province of Ontario for months after she told the Ontario Securities and Exchange Commission that he was going out of business with him. Binance reportedly acknowledged in February that it was working with United States regulators to resolve compliance issues. In March, Binance was sued by the US Commodity Futures Trading Commission for alleged trading violations.

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This post Brazilian Authorities Investigate Binance For Guiding Clients Past Stop Order: Report

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