Binance, the world’s largest cryptocurrency exchange by trade volume, recently announced that it would suspend futures trading services for all Brazilian customers to comply with newly enacted regulations on non-residents controlling assets of private companies operating in Brazil.
Brazil has put the top cryptocurrency exchange under regulatory pressure to comply with Brazilian regulations. Binance’s latest move follows Brazil’s crackdown on crypto-futures trading, which will be temporarily suspended until they comply with local laws.
A Binance representative commented that the decision came directly from the Brazilian regulatory agencies ordering them to move.
To respect the Brazilian order, Binance 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.Binance spokesperson said.
Brazilian regulators have been struggling with how best to keep up with crypto developments while also staying true to their own regulatory guidelines, leading them at this point towards crafting some specific legislation that would help define what appropriate business models they want for Brazilians and foreigners alike who trade or invest in cryptocurrencies such as Bitcoin.
Recently, the Brazilian government has announced they will be implementing regulations for the cryptocurrency industry to stimulate growth and keep illegal activity at bay.