Binance stops offering crypto derivatives in Brazil as it shapes up to regulators' demands
- Crypto exchange Binance will no longer offer crypto derivatives products such as futures on its Brazilian platform.
- Brazilian authorities ordered Binance to stop trading and marketing the products in July 2020.
- Binance has vowed to cooperate with regulators after a series of bans and crackdowns on its services across the globe.
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Binance halted trading in crypto derivatives on its Brazil platform to comply with an order by the South American country's securities authorities, the latest step in its efforts to work better with regulators.
People in Brazil can no longer trade futures, options, leveraged tokens and margin products on the Portuguese-language site, but they are still able to do so on the English site, local media reports said Friday.
The crypto exchange will no longer advertise or carry out other marketing of the products, as demanded by the country's securities regulator. The Comissão de Valores Mobiliários told Binance in July 2020 to suspend futures trading as it didn't have the necessary official authorization, reports said.
Binance said it had prevented the option for trading in future contracts at that time and has since put in place more restrictions.
"To respect the Brazilian order, Binance implemented restrictions on our website and stopped marketing on the derivatives products" the crypto exchange said in a statement to Insider on Monday.
A few weeks ago, Binance's CEO Changpeng Zhao vowed the company would cooperate with global regulators, after a series of crackdowns on the world's largest cryptocurrency exchange by authorities across the globe.
On Thursday, Binance introduced restrictions on derivatives trading in Australia after a warning from the country's Securities and Investments Commission. It has also hired people with regulatory and compliance expertise as top executives.
In addition, it has introduced "know your customer" processes to help prevent money laundering, which authorities have cited as a concern around crypto transactions and trading.
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