- Binance has paid 9.6 million Brazilian reals to settle a four-year CVM probe into its derivatives offering
- The CVM launched the investigation in 2020, rejecting Binance’s initial 2 million real settlement
- Binance has secured permission to continue operating in Brazil following the new settlement agreement
Binance has paid 9.6 million Brazilian reals ($1.76 million) in order to end a four-year probe by the Brazilian Securities and Exchange Commission (CVM) into its derivatives offering. The CVM’s investigation was launched in 2020 and would have ended sooner if the agency had accepted Binance’s initial 2 million real settlement offer, but it has held out for almost five times that. Following the agreement, Binance is allowed to continue operating in the country under a new agreement.
Lowball Offer Rejected
The CVM ordered Binance to cease offering derivatives trading services in the country in July 2020, declaring that the exchange was not authorized to “act as a securities intermediary” in Brazil and threatened the company with a 1,000 real ($186) daily fine. At the same time, Binance was prevented from marketing or offering derivative services of any type in the country without CVM approval.
Binance made a settlement offer of 2 million reals in August last year, but this was rejected by the CVM two weeks later, with the body finding that the offer was not “timely and convenient.” Binance returned in February this year with a vastly improved offer of 9.6 million reals and, following negotiations with the Term of Commitment Committee, the offer was accepted and terms agreed.
Binance’s settlement was formally approved on Monday, a decision that effectively allows it to continue its operations under the new terms of the agreement.
Binance’s New Approach
The deal is the latest in a number that Binance has struck in recent months in order to clear the decks of regulatory issues and allow itself to operate legitimately around the world.
It appears that under the stewardship of new CEO Richard Teng, the company is keen to put such battles behind it and take a new approach to its operations.
