Binance may face punishment Brazil For allegedly failing to respond to an order to stop selling crypto derivatives,
o globo reported that the Federal Public Prosecutor’s Office and the Federal Police have opened an investigation into the exchange over “alleged financial crimes.”
The media outlet said that the investigation was launched following information received from the market regulator, the Securities and Exchange Commission (CVM).
CVM has reportedly told the attorney general of São Paulo state that the exchange may have continued to offer cryptocurrency derivatives to Brazilian customers even after the state issued a “stop order”.
The media outlet quoted Binance as saying that it “does not comment on ongoing investigations.”
But the exchange “reiterated that it does not offer derivatives in Brazil.”
CVM issued a stop order to the exchange in 2020.
In early 2021, the exchange announced that it would stop offering crypto derivatives in Brazil.
But the CVM has presented several documents to the Federal Police to support its claim.
These allegedly include screenshots of chats with Binance support staff.
In one of these chats, the media outlet said, a staff member told a Brazilian user that they could still access derivatives offerings by changing the language on the app or website.
Binance in hot water in Brazil?
Binance said it “remains in permanent contact” with the authorities that “oversee the crypto and blockchain sector in Brazil and elsewhere in the world.”
The Federal Public Ministry reportedly confirmed to media outlets that Binance was under investigation.
But the ministry declined to provide more details about the matter, claiming the investigation was ongoing.
Meanwhile, the federal police said it “does not comment on ongoing investigations.”
In August 2021, Binance “announced that it had stopped offering derivatives to customers in Brazil,” the 2022 CVM report said.
The report also found that Binance Brazil’s website “removed mention of this type of financial asset.”