Brazil's Securities and Exchange Commission (SEC), locally known as CVM, has banned crypto exchange Binance from offering derivative products in the country.
In an order published on Monday, CVM said derivative contracts are securities, regardless of the underlying assets, and Binance "does not hold authorization" to act as a securities intermediary in Brazil. The order was first reported by CoinTelegraph.
"It remains evident that the company Binance Futures, through the webpage 'www.binance.com,' captures customers residing in Brazil with a public offering of derivative intermediation services...; the aforementioned company does not hold authorization from this Securities and Exchange Commission to act as a securities intermediary," the order reads.
A Binance spokesperson declined to comment to The Block when reached.
The CVM has ordered Binance to "immediately suspend" the direct and indirect broadcasting of such services, including via its website and social media networks. Failing to do so will result in a daily fine of 1,000 Brazilian reals (~$188), per the order.
Notably, the order only mentions derivative offerings. It is not clear whether Binance's spot trading platform has also been suspended in Brazil.
The CVM's action appears to be the first one regarding crypto derivatives in the country.