Binance suspends futures trading features for Brazil clients on Friday 21st August 2021, in an attempt to comply with the local regulations of the country.
Dating back to July 2020, Binance was subpoenaed by the CVM and asked to suspend its futures trading features for Brazilians, as the brokerage firm operated without authorization to do so.
Binance reportedly said, “To respect the Brazilian order, we have implemented restrictions on our website and stopped marketing on the derivatives products. If there are new changes, we will evaluate and proactively engage with the relevant stakeholders to find the optimal solutions for the local users. We will share more information if and when we have a decision and are ready to announce.”
The latest move in Brazil comes as no surprise. Binance has been reducing its product offering following backlash from global regulatory bodies across the globe. Recently, it announced that all users will be required to verify themselves through the exchange in order to make use of its services.
The announcement states that the move was to further enhance user protection. The Brazil suspension is a clear indication that the exchange is pushing for global adaptation and regulatory-friendly conditions in an attempt to continue operating on a global scale.
Brazil Wants to Regulate the Crypto Industry
Brazil wants to regulate cryptocurrencies more closely. Roberto Campos Neto, said at an online event held on Thursday that the central bank and CVM are discussing the regulation of cryptocurrencies. He states that local regulations should facilitate investors’ demand for cryptocurrencies.
The Central Bank President seems to believe that cryptocurrencies will play a huge role in payment platforms. He believes that the industry is key to the growth of digital payments within the country. He said, “It is important to report that this arises from a need that people have for payments to be fast, open, secure and with transparency in all senses.”