- Binance has agreed to pay a $1.7 million to the Brazilian Securities and Exchange Commission.
- CMV accused Binance of providing derivatives trading services without proper compliance.
In the latest legal development, crypto exchange Binance [BNB] will have to pay $1.76 million to the Brazilian Securities and Exchange Commission (CMV).
According to CMV, the exchange has conducted illegal derivatives trading in Brazil.
In 2020, CMV started its investigation into Binance 2020 accusing the exchange of providing derivatives trading services without full legal compliance.
Following the investigation, the agency asked Binance to suspend such activities or pay a fine if unauthorized trading activities continued.
After the initial warning, the exchange offered to pay $370k to resolve the matter last year, which the regulator rejected.
But now, in a sign of relief for Binance, CMV has accepted the latest proposal after the approval by the country’s term commitment committee.
According to the agreement, Binance will operate and the law and pay $1.7 million for violations.
Binance’s legal battles
Notably, Binance has had considerable trouble with regulatory authorities over non-compliance. As reported by AMBCrypto, Binance operations were suspended in India over non-compliance.
Besides the two recent settlements, the exchange has had many cases of violations. For instance, the company agreed to pay $4.3 billion for violations of anti-money laundering and sanctions laws in the United States.
Equally, these violations saw the company’s former CEO Changpeng Zhao face a jail term. Therefore, the settlement in Brazil arises amidst increased global pressure on the exchange by regulatory authorities.
Since Binance is one of the leading crypto exchanges in the world, the firm has faced off with authorities over compliance with local regulations.
What does it mean for Binance and BNB?
The legal settlement with Brazilian authorities is a win for the exchange, since the country is one of the leading nations in digital asset adoption.
According to projections, revenue from crypto in Brazil will hit $2.1 billion by year-end. Equally, the number of users will reach 31.90 million by 2025 increasing from 14.57% to 14.58%.
Source: Statista
Therefore, with access to this market without legal restrictions and with compliance, Binance will grow its users, thus increasing revenue and profitability.
Equally, increased adoption will boost its native token BNB through trading volume. BNB has faced high volatility, and increased acceptability for the exchange will help its coin.
Source: Coinglass
As of this writing, BNB is trading at $515.91 after declining by 2.11% decline in 24 hours. Also, the altcoin has declined in trading volume by 5.1% to $1.6 billion over the same period.
Read Binance Coin’s [BNB] Price Prediction 2024-25
The price movement shows the news has not had any impact on the altcoin on daily charts. According to Coinglass, trading volume has declined from $508 million to $495.9 million.
Despite the decline, in daily trading, the development is a piece of good news for Binance and will have a positive impact in the long run.
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