Brazilian officials are investigating cryptocurrency exchange Binance and its employees for financial crimes, Valor Economico said. April 18th.
Brazil’s Securities and Exchange Commission (CVM) has said that Binance may have engaged in illegal activities by offering crypto derivatives to customers, despite a government order to stop the company in 2020. I believe there is.
Binance has complied with the order by suspending futures trading in 2021 to the satisfaction of the regulator. However, recent findings suggest that Binance did not actually comply fully. Screenshots reportedly show customers in Brazil being able to change the language on Binance’s website to access otherwise restricted features.
This workaround has been approved by Binance itself. One support agent wrote: [Portuguese-Brazil]. You can change the language. ” Such advice is illegal in Brazil.
A legal expert cited by Valor suggested that Binance itself is not necessarily responsible for the actions of its employees. Instead, authorities could prosecute the customer service representative, who faces six months to two years in prison if convicted.
Binance told Valor it would not comment on existing research, claiming it does not offer derivatives in Brazil.
The Brazilian charges are similar to another US case where the Commodity Futures Trading Commission (CFTC) accused Binance of helping customers bypass geo-restrictions through the use of VPNs.
The Brazilian post investigating Binance for illegal derivatives offerings first appeared on CryptoSlate.
