Binance and Brazil's SEC reach agreement years after the regulator banned derivatives products
Quick Take
- Brazil’s SEC, locally known as CVM, banned the crypto exchange from offering derivatives products in the country in 2020.
- Binance agreed to pay $9.6 million reais, or $1.75 million U.S. dollars, in an agreement with the regulator, according to a post on its website.
Binance said Wednesday it reached an agreement with Brazil's Securities and Exchange Commission, years after the regulator blocked the exchange from offering derivatives products.
Brazil's SEC, locally known as CVM, banned the crypto exchange from offering derivatives products in the country in 2020. The regulator said derivatives contracts are securities and said Binance "does not hold authorization" to act as a securities intermediary in Brazil.
CVM later approved the agreement with Binance and said the exchange agreed to pay $9.6 million reais, or $1.75 million U.S. dollars, according to a post on the regulator's site.
Binance does not and is not allowed to offer derivatives in Brazil, a Binance spokesperson said in an email on Wednesday.
"Since the regulator’s first communication to Binance in 2020, the exchange has taken all steps and necessary actions to respond to the authority and comply with local requirements," a Binance spokesperson said. "CVM's board decision to accept the proposed Term of Commitment reaffirms that the adjustments and upgrades made by Binance throughout time are sufficient for the regulatory agency."
Brazil's CVM referred The Block to its site which posted the decision.
Update: Aug. 14, 6:15 p.m. UTC to include comments from Binance
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
