Brazilian Authorities Investigate Binance for Alleged Financial Crimes

As per reports from the local media, Binance, a cryptocurrency exchange, is under investigation by the Brazilian Federal Police and the Federal Prosecutor’s Office.

The investigation was initiated after the Securities and Exchange Commission (CVM) informed the Attorney General of Sao Paulo State about potential financial crimes involving Binance.

The accusations suggest that the exchange assists its clients in circumventing the ban on investing in cryptocurrency derivatives, violating the CVM order of 2020 that prohibits such transactions.

The CVM provided evidence to the police, including screenshots of instructions in Portuguese for Brazilian users on how to access Binance Futures by changing the language settings.

Moreover, the organization stated that Binance has significant content in Portuguese with no notification restrictions for Brazilian users.

Binance refuted these allegations and claimed that it operates in compliance with local regulatory requirements and is committed to developing the crypto and blockchain sector globally.

Earlier this year, the Financial Times reported that Binance concealed its close relationship with China for several years, based on access to internal documents of the world’s largest crypto exchange.

Despite Binance’s strong start to 2023, achieving a market share of over 70% by the end of 2022, it could not retain its position as the market leader for long, with the fall in its share attributed to the role of US financial regulators, according to Kaiko experts.