Brazil holds back futures from Binance
Brazil holds back futures from Binance
Regulation

Brazil holds back futures from Binance

By Alfredo de Candia - 7 Jul 2020

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A document was published yesterday in Brazil regarding Binance and specifically their futures product, explaining that the exchange would not be authorized to provide this type of instrument.

The document was issued by the CVM (Comissão de Valores Mobiliários), the Brazilian SEC, which responds to the Superintendence of Relations with Markets and Intermediaries. 

The document examines the public offer of derivative products which, according to the law, must comply with Article 15 of Law 6385 of December 7th, 1976, which states in one of its paragraphs:

“With respect to financial institutions and other corporations authorized to perform simultaneously transactions or services on the securities market and on markets subject to Central Bank of Brazil supervision, the duties of The Securities Commission of Brazil shall be limited to the activities governed by this law and shall be exercised taking into account the duties of the Central Bank of Brazil”.

This document, therefore, decrees an immediate stop for the futures offered by Binance to the citizens of Brazil. In the event that this does not happen, there will be a daily fine of 1000 Brazilian reals, equivalent to just under 200 US dollars.

The measure is therefore clear and prohibits the exchange from selling derivatives.

These futures were launched last year and included several assets such as Ethereum (ETH), Bitcoin (BTC), Binance Coin (BNB) and Zcash (ZEC), thus an interesting and very varied offer.

At this point the word passes to Binance who hasn’t commented on the news yet, not clarifying whether it will proceed to eliminate the sale of futures in Brazil.

Once again we see the application of laws that curb the spread of revolutionary products based on blockchain that do not fall under the regulation of the traditional system.

 

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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