The world’s largest crypto exchange by trading volume, Binance, is at the center of a Brazilian police investigation regarding its derivatives offerings.
O Globo first reported the probe after Brazilian authorities claimed that the exchange failed to respond to their orders.
Federal police and prosecutor’s office launch official Inquiry
The Federal Police Prosecutor’s Office and the Federal Police have now initiated an official investigation into alleged financial crimes committed by Binance. The SEC provided the police with screenshots from August 2021, showing instructions for Brazilian users to change their language settings to access Binance Futures. The SEC also noted extensive Portuguese-language content without any restrictions for Brazilian users.
Binance responds to charges, awaits decision on commitment agreement
According to Valor Econômico, Binance responded to the charges in February by submitting a proposal for a commitment agreement, which remains undecided. Binance stated that it “does not offer derivatives in Brazil” and operates in compliance with local regulations while maintaining an ongoing dialogue with authorities.
Binance has faced comparable charges in the past, including operating in Ontario, Canada, after informing the Ontario Securities Commission it would cease activities. In February, Binance reportedly acknowledged working with U.S. regulators to resolve compliance issues. In March, the exchange was
sued by the U.S. Commodity Futures Trading Commission over alleged trading violations.
