Binance under investigation in Brazil for alleged financial crimes

Binance, the world’s largest cryptocurrency exchange, is being investigated for alleged financial crimes related to its derivatives business by federal authorities in Brazil, local newspaper Valor Económico reports.

The Federal Public Ministry and the Brazilian Federal Police launched investigations due to suspicions that Binance Google, first foldable smartphone, Google I/O developer conference, Google Pixel Fold, launch to Brazilian clients even after national regulators issued a suspension order in 2020.

Although Binance stopped offering derivatives services to domestic clients in 2021 and changed the language of its website to stop offering derivatives to Brazilian users, Brazilian authorities believe the company violated the Brazilian Securities and Exchange Commission’s ban (CVM) when some employees instructed users to access the global platform to access derivative services. Binance support chat screenshots are mentioned in which a user was encouraged to change the language of the website to access futures services, as per the CVM process.

The Brazilian authorities are looking for the person responsible for the message and if any executive gave an order to provide such recommendations in order to circumvent the restrictions imposed by the CVM. The Federal Public Ministry confirmed the existence of an investigation into Binance, although no further details about the case were provided.

Binance is also facing scrutiny in other jurisdictions, including the United States, where the Commodity Futures Trading Commission (CFTC) sued the company and its CEO, Changpeng Zhao, for allegedly violating domestic derivatives laws. US regulators allege that Binance has deliberately concealed the location of its headquarters to circumvent regulations in the US and other jurisdictions, and that company employees have instructed US clients to access the global platform to circumvent national regulations.

Binance recently lost its derivatives license in Australia after an investigation in that country, and is under investigation by financial authorities in the UK, Japan and Singapore.

The research in Brazil comes at a time when Binance is looking to expand its presence in the Latin American market, starting with Brazil, which has been identified as one of the fastest growing markets in the region.

K. Tovar

Source: Diariobitcoin

(Reference image source: file)

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