Binance’s new policy on derivatives trading for Brazilian users may result in blocked accounts and withdrawals. The analysis was made by accountant Ana Paula Rabello, a specialist in cryptoassets, in a video on her channel “Declarando Bitcoin“.

In recent days, Binance began to send a statement to Brazilian users indicating that, in order to operate in the futures and derivatives market, they need to say that they are no longer resident in Brazil. The broker says that, when proceeding, the person informs that he is aware that he will deal with products that are not regulated in the country.

For Rabello, Binance is transferring responsibility for any effect of this action to the client. But the most important point in the expert’s view is that this user action gives the company great power over its assets.

This is because, when registering, the client informs that he is a resident of Brazil. If he accesses the futures platform and, as a result, says he is no longer a resident, two contradictory pieces of information appear, which attracts the compliance area.

“You have a KYC registered with a tax residency address, so you inform that you are no longer a resident of that country. What are you doing with it? You are giving Binance the power to use the word compliance. When she uses that word, she can lock up your resources”, says Rabello.

Binance blocks users in Brazil

The expert recalls that Binance recently blocked withdrawals from Brazilian customers for weeks due to a disagreement with a partner company and then began to ask for proof of wealth for some customers.

“I would not use this option [operar com derivativos mentindo na questão da residência] because I would surely be afraid of having some kind of crash on Binance in the future”, he says.

Rabello points out that Binance can use the breach of the compliance code to avoid a herd effect, that is, a mass departure of users from the platform.

“If for some reason people start running away from Binance, it will use compliance because it has two pieces of information [contraditórias] and you are stuck on the platform until you can prove otherwise”, he warns.

See the video below:

Binance Position

Binance sent a note about its new policy for using the derivatives platform for users registered in Brazil, but who choose to indicate that they are residing elsewhere:

“Binance, the world’s largest blockchain and cryptocurrency ecosystem infrastructure provider, reiterates that it is fully committed to compliance and does not offer derivatives locally. The exchange highlights that it implemented limitations on its website after a request from the CVM, as a result of Declaratory Act 17.961/20, which reinforces the company’s position to collaborate with regulators around the world, and that it has constant work to create and improve tools. and processes, which includes communicating with users.

Binance operates in full agreement with the regulatory scenario in Brazil, has been giving repeated demonstrations of constant evolution in this regard, and maintains permanent dialogue with local authorities for the development of the sector in Brazil and in the world. Binance believes that regulation is the only way for the crypto industry to develop and reach the general public.

As a result of the robust compliance and KYC (know your customer) program, Binance has received approvals and registrations in France, Italy and Spain, for example, which makes the company one of the few crypto institutions, and the only one in business. in Brazil, to have this type of authorization from G7 countries. Brazil is an extremely relevant market for the company and it will continue to invest and expand services for local users, as well as contribute to the development of the blockchain and crypto ecosystem in the country, which includes the regulation of the sector. The process of acquiring local brokerage Sim; paul, a company authorized by the Central Bank and the Securities and Exchange Commission (CVM), announced in March, reinforces this commitment.”


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