The global woes of crypto trading platform, Binance Holding Limited continue as the platform has been slammed with a fine of $1.7 million for derivatives trading violations in Brazil.
The platform will pay $1.7 million to the Brazilian Securities and Exchange Commission (CVM) as a settlement following an investigation into its unauthorized derivatives trading in the South American country.
The development was announced by CVM via an official statement on its website on Wednesday , August 14, 2024 spelling out the details of the case and the amount Binance is expected to pay.
Naomisophyblog reports that this is the latest installment in the series of regulatory challenges that the crypto platform is facing in several countries of the world, including in the US, India and Nigeria to mention a few.
An official of the crypto exchange platform, Tiagran Garmbagan is still in detention in Nigeria over claims of Tax evasion and money laundering by the platform.
Giving details of the recent crackdown, CVM held that “The Board of the Securities and Exchange Commission (CVM), in a meeting on 8/13/2024, analyzed proposals for the Term of Commitment of the following administrative sanctioning processes (PAS):
PAS 19957.008369/2022–11: B Fintech Technology Services Ltda.
“PAS 19957.008992/2023–47 : Gafisa SA, Guilherme Augusto Soares Benevides and Ian Masini Monteiro de Andrade.
“B Fintech Serviços de Tecnologia Ltda presented a new proposal for a Term of Commitment to terminate PAS CVM 19957.008369/2022–11.
READ ALSO:Court orders NCoS to release Binance executive’s medical report
“In a meeting held on 8/29/2023, the CVM Board decided to reject the agreement with B Fintech Serviços de Tecnologia Ltda, as it understood that the execution of the Commitment Term would not be timely and convenient.
“On 2/15/2024, a new proposal for a Term of Commitment was presented, and, after negotiations with the Term of Commitment Committee (CTC), the proponent committed to pay the CVM R$9,600,000.00. The PFE-CVM concluded that there is no legal impediment to the execution of the agreement.
“Therefore, the CTC considered it appropriate and convenient to accept the agreement.
“The Board followed the CTC’s opinion and accepted the signing of a Commitment Term with B Fintech Serviços de Tecnologia Ltda.” CVM Stated
For context, B Fintech Technology Services Ltd. is a shell company operated by Binance in Brazil.
In May 2023, a Brazilian court recognized that the company was part of Binance Group.
In July 2020, the CVM ordered Binance to cease offering derivatives trading services in the Latin American country, arguing that it was not authorized to “act as a securities intermediary” and threatening the company with a daily fine of 1,000 reais.
Later, in August 2023, the CVM rejected Binance’s settlement proposal of 2 million ($370,000) reais.
In a separate document detailing settlement terms, the CVM said that Binance was performing “distribution and mediation of operations with securities offered to citizens residing in Brazil without being a member of the securities distribution system and without obtaining the necessary registration or exemption from registration with the CVM.”
By: Babajide Okeowo
The post Binance woes continue, slammed with $1.7m fine in Brazil for trading violations appeared first on Latest Nigeria News | Top Stories from Naomisophyblog.
