Binance Suspends Use of Futures Contracts In Brazil By Order Of Authorities

Binance futures contracts suspended in Brazil

The weeks go by and look the same for Binance. It is Brazil’s turn to tighten the screw facing the exchange platform of Chinese origin. According to a Brazilian media outlet, Binance has indeed suspended investment in futures contracts in the country since August 20, at least from its local version.

For the Brazilian client, it remains possible to invest in futures contracts and other derivative products as long as access is made from the Binance site in English. However, all advertising related to these same derivative products has been suspended until further notice.

This suspension of investment in certain derivatives follows similar measures in Europe and Hong Kong.

👉 On the same subject – Binance interrupts its derivative product offering in 3 European countries – Measures to come for France?

A suspension of futures contracts linked to an order from the Brazilian authorities

It is to comply with local regulations, and in particular an order from the Comissão de Valores Mobiliários (CMV), the equivalent of the Financial Markets Authority in Brazil, that Binance has taken the decision to suspend the investment. on futures contracts.

In July 2020, the CVM asked Binance to suspend this investment possibility, because the platform was then operating in Brazilian territory without authorization.

This request had not been taken into account by Binance. But the recent setbacks of the Chinese giant have apparently given ground to grind to the CVM which was able to carry out its order.

Unlike other Latin American countries, Brazilian authorities are wary of cryptocurrencies. The country, through the central bank and the CVM, wants to regulate digital assets more strictly. This was affirmed last week by Roberto Campos Neto, president of the Central Bank of Brazil.

On the other hand, Neto did not want to throw out the baby with the bathwater. Viewing crypto-assets like Bitcoin (BTC) or Ether (ETH) as an investment rather than a currency, Neto praised stablecoins which he said could meet a people’s need for power. make payments faster, more open, secure and transparent.

While BTC should not become legal tender in Brazil as it is in El Salvador, cryptocurrencies are nevertheless watched with attention by the authorities.

A new suspension for Binance

For Binance, this is a new setback to take. Since last June, the bans have multiplied. It was first of all the British authorities who ordered the platform to stop its activities in the United Kingdom. A series of suspensions followed, the most important of which for European customers is the inability to make deposits by SEPA transfer.

Despite the appeasement with the regulators wanted by Changpeng Zhao, the bans, investigations and other forced suspensions continued. Thus, the main payment manager in Europe preferred to end its collaboration with Binance.

If Brazil is not the most important market for Binance, the bad news continues to feed the news on the platform.

👉 To read – Binance: Changpeng Zhao plays the appeasement card with the regulators

Newsletter 🍞

Receive a recap of crypto news every Sunday 👌 And that’s it.

About the author: Benjamin Allouch

twitter-soothsayerdata

Lawyer specializing in digital law and personal data. He quickly became interested in bitcoin and blockchain technology, and founded the blog bitcoin-blockchain.fr. He is interested in the emergence of blockchain law and the legal consequences of this technology.
All articles by Benjamin Allouch.

Back to top button