Chile’s Financial Authority warns against Binance

Binance, the world’s largest cryptocurrency broker, continues to face legality issues in different countries. While the exchange is under scrutiny in the US, in Chile the company has just received an alert from the financial authority for not having authorization to work in the country.

In a press release, the authority alerts the public to brokers operating within the country without the necessary authorizations determined by the CMF.

“The Financial Market Commission (CMF) informs its users and the general public that the entities named Omegapro, Binance and Swedencap are not regulated or registered under the CMF.”

The document points out that in the case of Binance, the organization was issuing a warning about the entity that has no supervision or regulation and as a result is not authorized to provide services in Chile.

“With respect to Binance, which operates through the website, CFM informs that it is an unsupervised entity and that, as a result, it is not authorized to provide services in Chile.”

In addition to alerting the brokerage firm, the document also highlights that it is not only in Chile that Binance has had warnings issued about its lack of regulation, citing a similar action taken by the Financial Conduct Authority (FCA) of the United Kingdom.

“The UK’s Financial Conduct Authority (FCA) held a warning last month that Binance Markets Limited and Binance Group do not have the necessary authorization to provide investment services.”

With this, the Chilean government wants to make it clear to the general public that Binance is not authorized to operate within the country and cannot offer its services in Chile.

However, the nature of the document does not make it clear that there is an explicit prohibition on the exchange’s actions, but this does not mean that the situation is not serious.

Based on Brazil, these alerts issued by the local authority (in our case, the CVM) usually represent a closer look from the authorities to the broker/cryptocurrency company.

This is definitely a time to keep an eye on how the broker will continue to try to improve its situation regarding compliance with the regulations of different countries.

Binance has already started to make different radical changes to try to please the financial authorities. For the time being, the broker continues to operate relatively smoothly in Latin American countries, but if other regions followed Chile’s example, the situation could change.