Binance faces scrutiny in Brazil.
The Brazilian Federal Prosecutor's Office and Federal Police are reportedly investigating the cryptocurrency exchange Binance.
According to Brazilian news portal Valor Econômico, the Brazilian Securities and Exchange Commission (SEC) informed the Attorney General of the State of São Paulo that Binance might have failed to obey SEC's order.
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In 2020, the Brazilian SEC issued Binance a stop order to halt all cryptocurrency derivatives offerings. Under Brazilian law, futures contracts are considered securities, irrespective of the underlying assets.
According to the SEC, in August 2021, screenshots were taken showing instructions for Brazilian users to change their language settings to gain access to the Binance Futures section. Additionally, the SEC pointed out the presence of extensive Portuguese-language content without no information about restrictions for Brazilian users.
Valor Econômico revealed that in February, Binance responded to these charges by submitting a proposal for a commitment agreement. However, no decision has been made since then.
When asked about the matter, Binance's spokesperson noted:
<Binance> reiterates that it does not offer derivatives in Brazil, that it operates in compliance with the local regulatory scenario and maintains a permanent dialogue with the authorities for the development of the crypto and blockchain segment in Brazil and in the world.
It is not the first time Binance has faced such allegations. The US Commodity Futures Trading Commission sued Binance in March over alleged trading violations.
On top of that, at the end of March, the news portal Financial Times unveiled Binance's secret ties with China. The news came after the company claimed for years that it had left the country following the 2017 crypto crackdown.
Binance's ongoing investigation in Brazil highlights the growing scrutiny faced by crypto exchanges as regulators worldwide strive to maintain oversight and compliance in the rapidly evolving digital asset landscape.
