• Brazilian authorities have launched an official investigation into Binance, alleging financial crimes facilitated through its derivatives offerings.
• The Brazil Securities and Exchange Commission informed the Attorney General of Sao Paolo that the cryptocurrency exchange allegedly ignored a “stop order” issued by the state.
• Binance has categorically denied offering derivatives in Brazil and stated that it was in contact with authorities overseeing the crypto space in Brazil and other jurisdictions around the world.
Binance Under Investigation In Brazil
The world’s largest cryptocurrency exchange, Binance, is facing a probe in Brazil, with authorities confirming the launch of an official investigation into the exchange.
Allegations Of Financial Crimes
Authorities allege that Binance failed to respond to a stop order, directing it to stop selling crypto derivatives. Brazilian media speculated that the probe was launched following a tip-off from the Brazil Securities and Exchange Commission (Comissão de Valores Mobiliários – CVM), the country’s primary market regulator. According to reports, CVM informed the Attorney General of Sao Paolo that the cryptocurrency exchange allegedly ignored a “stop order” issued by the state. As a result, Binance allegedly offered crypto derivatives to Brazil users in violation of local law.
Federal Police And Prosecutor Involved
As a result of this tip-off, both Federal Police and Federal Prosecutor’s Office have initiated an investigation into Binance’s activities. So far however, no official statement has been released by either party involved in this case.
Binance Refuses To Comment
Binance has so far remained silent on this issue refusing to comment on any ongoing investigations or claims made against them by several regulatory bodies including CVM who had previously issued a stop order directing them to stop selling crypto derivates which they had ignored according to reports. The company however did issue a statement claiming they do not offer derivates trading services within Brazilian territory while also taking their compliance obligations seriously as they take collaborative approach when dealing with regulators throughout different regions across globe including those of Brazil as well as other states worldwide.
Troubles Mount For Crypto Exchange
The exchange has faced mounting pressure from various regulatory bodies during recent months due to similar complaints filed against it for failing comply with regulations set forth governing crypt markets such as Australia’s ASIC (Australian Securities and Investment Commission) which revoked their license earlier April this year citing misrepresentation among other reasons why their license was removed from them thus leading these current allegations