Binance, the preeminent global cryptocurrency exchange, has agreed to a financial settlement of 9.6 million reais (approximately $1.76 million) with the Brazilian Securities and Exchange Commission (CVM). This resolution comes as a consequence of Binance’s provision of derivatives trading services in Brazil without the requisite licensing.

The CVM announced on Wednesday that, following the presentation of a revised Term of Commitment proposal on February 15, 2024, and subsequent negotiations with the Term of Commitment Committee (CTC), Binance has consented to the monetary settlement.

The CVM initially instructed Binance to halt its derivatives trading operations in Brazil in July 2020, citing the company’s lack of authorization to act as a securities intermediary and imposing a daily fine of 1,000 reais for non-compliance. In August 2023, Binance’s proposed settlement of 2 million reais (around $370,000) was dismissed by the CVM.

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A detailed statement from the CVM indicated that Binance had been engaged in “distribution and mediation of securities transactions for Brazilian residents without membership in the securities distribution system and without securing the necessary registration or exemption from registration with the CVM.” This settlement underscores the regulatory body’s firm stance on enforcing compliance within the securities trading landscape.