Binance Is Now Under Investigation By Federal Police In Brazil

Key Points:

• Binance is facing an investigation in Brazil for allegedly ignoring a stop order on crypto derivatives.
• Despite the order, the CVM has presented evidence that the exchange continued to offer derivatives.
• The exchange denies the allegations and says it does not offer derivatives in Brazil.

Binance is under investigation in Brazil for allegedly ignoring orders to stop selling crypto derivatives. The CVM has presented documents to support its claim that Binance continued to offer derivatives to Brazilian customers despite a stop order.

Binance is under investigation in Brazil for allegedly ignoring orders to stop selling crypto derivatives. Valor.Globo reported that the Federal Public Prosecutor’s Office and the Federal Police have initiated the investigation over allegations of financial crimes following a tip from the Securities and Exchange Commission (CVM). The exchange is accused of continuing to offer crypto derivatives to Brazilian customers despite a stop order issued by the CVM in 2020, leading to the authorities launching an inquiry.

The investigation is ongoing, and the CVM has presented a range of documents to the Federal Police to support its claim that Binance may have continued to offer derivatives to Brazilian customers despite the stop order. One of the documents includes screenshots of chats with the support staff. In one of these chats, a Binance staff member allegedly told a Brazilian user that they could still access derivatives offerings by changing the language on the app or website.

Binance has stated that it “does not comment on ongoing investigations” but has also “reiterated that it does not offer derivatives in Brazil.” Earlier in 2021, the exchange announced that it would stop offering crypto derivatives in Brazil. A 2022 CVM report found that Binance had announced that it had stopped offering derivatives to Brazilian customers in August 2021 and had removed mention of this type of financial asset from its Brazilian website.

While the investigation is ongoing, it remains to be seen what actions will be taken against Binance and what impact it will have on the cryptocurrency market in Brazil.

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