The Securities and Exchange Commission (SEC) of Brazil issued a notice to the leading spot crypto exchange Binance to cease offering crypto derivatives trading in the country.
As per the document released on July 2nd, 2020, the company does not hold the authorization from the SEC to act as a securities intermediary in the country.
It further states that Binance Futures, through its page “www.binance.com,” is offering derivative intermediate services to the customers residing in Brazil.
This is because “derivative contracts are securities, regardless of the underlying assets,” states the document.
As such, the company is ordered to “immediately suspend” offering derivatives. Failure to comply with this order will subject Binance to the imposition of a daily fine of R $ 1,000.00 (one thousand reais worth nearly $187).