Binance could have offered crypto derivatives to residents of Brazil after their ban by the local Securities and Exchange Commission (CVM). According to Valor Econômico, police and prosecutors are examining the regulator’s February 2023 request.
Under the country’s laws, futures contracts are considered securities regardless of the nature of the underlying assets.
According to the publication, the platform helped clients circumvent the restrictions. The CVM presented corresponding screenshots showing recommendations to change language settings to access the Binance Futures section.
The regulator noted that they contain extensive content in Portuguese with no notices of a ban for Brazilian users.
Valor Econômico noted that in response to the allegations, Binance proposed signing a voluntary undertaking. No action by authorities has yet followed.
“Binance confirms that it does not offer derivatives in Brazil and operates in accordance with local law, and maintains ongoing dialogue with authorities,” said platform representatives to the publication.
In March 2023, the U.S. Commodity Futures Trading Commission filed a lawsuit against Binance and its CEO Changpeng Zhao. The agency contends the exchange violated derivatives trading rules by operating without proper registration.
In April, the Australian Securities and Investments Commission canceled the license of Binance’s local subsidiary for financial services.