- Binance futures platform cannot be offered in Brazil following ruling from the country’s securities overseer
- Brazilian Securities and Exchange Commission says that the offering is classed as a sale of securities
- Binance has been involved in a battle over its domain name in Brazil
The Brazilian Securities and Exchange Commission (CVM) has ruled that Binance’s crypto derivative offerings, in particular Binance Futures, are trading securities and as such cannot be offered in the country. The ruling came last week but was posted to the CVM website yesterday and means that Binance will have to remove access to the Binance Futures platform for users in Brazil. The exchange has been operational in the country since mid 2017 and launched its futures offering in September last year.
Binance Futures Gets Locked Down in Brazil
Binance Futures will no longer be available to Brazilian users after the CVM ruled that the company “does not have authorization from this Securities and Exchange Commission to act as a securities intermediary”, meaning it must cease offering and advertising the platform with immediate effect. Doing so would risk a daily fine of 1,000 reais ($186), although it’s fair to say that Binance could probably afford that.
Binance Already Involved in Brazilian Legal Battle
Binance has already been involved in a legal battle in Brazil regarding its web domain. Brazilian diplomat Paulo Renato Dallagnol registered the website Binance.com.br and its brand at the National Institute of Industrial Property (INPI) on June 30, 2018, over a year since the exchange first began operating in the country.
Binance sued on the basis of copyright infringement and won an early victory last year when Dallagnol was prevented from using the Binance brand in any way. The case is still pending however and could well see Dallagnol awarded the site and use of the company name depending on the vagaries of the Brazilian legal system and global copyright law. Such a defeat would put any issues with Binance Futures operations in the country firmly on the back burner.