The Brazilian Securities and Exchange Commission (CVM) It ordered Monday that Binance immediately stop offering its derivatives trading services in the country. Binance in trouble ?!
Regulatory issue in Brazil
The order issued Monday, CVM ensures that derivative contracts are securities, regardless of the underlying assets, and Binance does not have the necessary authorization to operate as a securities broker in Brazil.
It is important to note that, although it was published on Monday, the statement is dated July 2.
“The offer to the public residing in Brazil of securities brokerage services is private for the institutions that are part of the securities distribution system provided for in art. 15 of Law 6.385, of December 7, 1976“Is read in the order.
Furthermore, as part of the warning, the CVM threatened Binance with a daily fine of 1,000 Brazilian reals, approximately $ 186 US dollars. And it is that the order went to the immediate cessation, however, at the moment the crypto exchange has not issued any statement.
Consequently, the problem is not the underlying assets of the derivatives that Binance offers, but rather that the crypto exchange does not have the necessary permits to operate as an intermediary in Brazil.
The problem with derivatives in Binance
It is important to note that the order only asks for the immediate suspension of the derivatives offer. However, it is not clear whether the spot trading platform will also be suspended in the country.
However, something that is clear is that this is the first public stance taken by CVM regarding crypto derivatives trading in Brazil.
Therefore, the community really does not know how the recent order directed at Binance could affect the rest of the crypto exchanges that operate in Brazil.
Likewise, it is worth mentioning that recently the Central Bank of Brazil issued an order to Mastercard and Visa to stop WhatsApp payment transactions.
Even the bank warned of the imposition of fines on the operations giants in case of not complying with the order. Could it be that Brazil has decided to carry out a much stricter regulatory process?
Brazil pro crypto?
As we mentioned earlier, it seems that the derivatives suspension order for Binance has nothing to do with the underlying assets, i.e. crypto.
But, still the doubt remains. At the moment, Brazil has shown itself as a country open to cryptocurrencies and new technologies, but how true can it be?
Recall that, in early June, the Brazilian Central Bank held a closed-door meeting with the Ripple team. So how true can it be that Brazil is a country open to crypto?