After winning a judicial victory to register its brand in Brazil, Binance was surprised.

According to a Declaratory Act of the Securities and Exchange Commission (CVM) published on Monday, the company will not be able to offer cryptocurrency futures contracts in Brazil.

The autarchy believes that the company "captures customers resident in Brazil with a public offering of derivative intermediation services".

Binance Futures banned in Brazil

Declaratory Act No. 17,961 of July 2, published on July 6, took the crypto market by surprise.

Binance is one of the world's largest exchanges by volume, offering futures contracts for several cryptocurrencies through Binance Futures.

The local authority's understanding is that Binance publicly offers derivatives.

Also according to the CVM, such products are securities. However, the Commission itself states that it has not authorized the company to offer future contracts in the country.

In this way, Binance received a stop order of the Commission. THE stop order it is an order to suspend the provision of a service, which does not mean a punishment.

It occurs in cases where the CVM understands that an offer may be harmful to members of the financial market.

The daily fine for non-compliance with the suspension is relatively low, being R $ 1,000.00 per day.

Despite the decision being made only on Binance, it is possible that an unsettling trend is forming.

Future cryptocurrency contracts at risk in Brazil?

In view of the authority's understanding of futures contracts, it is possible that other offers of futures contracts may be prohibited.

Exchanges such as Deribit, Huobi, BitMEX, FTX and several others that offer derivatives may be prohibited in Brazil.

For those who operate in the futures market and love leverage, the ban can have a very negative effect.

However, it remains to be seen whether the municipality will make new moves of this type.

Binance positioning

After becoming aware of the Declaratory Act, CriptoFácil contacted Mayra Siqueira, Binance's representative in Brazil.

However, at the time of publication of this article, Siqueira had not yet issued a position.

Read also: Analyst says this week will be down for Bitcoin

Read also: Binance confirms partnership with Swipe for debit card launch

Also read: Ethereum node takes almost a month to download

LEAVE A REPLY

Please enter your comment!
Please enter your name here