Crypto Exchange Binance Settles $1.75M Penalty with Brazilian SEC
- The countrys regulator, CVM, barred the exchange from issuing derivatives in 2020.
- The relevant breakthrough that the exchange recorded in India is highlighted by this settlement.
The long-running regulatory dispute between Binance and the Brazilian SEC has finally been settled, and the exchange is now making excellent progress throughout Latin America. The exchange has lately been making amends with authorities in many nations, adding to its reputation for having a wide reach in the sector.
The countrys regulator, CVM, barred the exchange from issuing derivatives in 2020. The exchange was accused of operating without the necessary permission and a daily penalty of 1,000 reais was threatened. Binance has entered into a settlement with the regulator, which amounts to 9.6 million reais, or over $1.75 million, after this accusation.
Focusing on Compliance
Moreover, as a penalty for providing unlicensed derivatives trading services in the Latin American nation, this sum represents a settlement. Also, after presenting an initial proposal for a Term of Commitment and engaging in talks with the responsible committee, the major exchange ultimately decided to pay the fine.
Notably, in August 2023, the cryptocurrency exchange offered the CVM 2 million reais, which is around $370,000. Regulator, however, turned down the settlement offer. The Brazilian Securities and Exchange Commission (SEC) said that the cryptocurrency exchange distributes and mediates activities involving securities sold to Brazilian individuals.
Furthermore, the fact that Binance isnt part of the securities distribution system is the main problem. Consequently, it was unable to get the necessary licenses and registrations. Or even a registration exemption, from the relevant regulatory bodies.
The relevant breakthrough that the exchange recorded in India is highlighted by this settlement. The cryptocurrency exchange paid a $2.25 million fine and intended to comply with the countrys Financial Intelligence Unit (FIU). Thus, this remedied the companys deficiencies in complying with AML requirements in India.
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Read more: https://thenewscrypto.com/crypto-exchange-binance-settles-1-75m-penalty-with-brazilian-sec/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
