Binance no longer offers futures contracts and requires verification

Under regulatory pressure from CVM, Binance stops offering futures contracts to Brazilians and requires face verification
Binance remains in the regulatory sights of authorities in several countries – Photo: Reproduction/Binance

the broker Binance withdrew the possibility of Brazilian traders trading futures contracts on their platforms, in an immediate measure that takes effect from this last Friday (20th).

Binance’s decision comes amid regulatory pressure involving the Brazilian Securities and Exchange Commission (CVM) – which has already been subpoenaing the company since mid-2020, considering the platform’s lack of authorization to operate future contracts.

In addition broker it also started to require, from all users, a Verification Intermediate staff amid growing compliance pressure.

Thus, each user must provide more data to the platform, which includes sending photos of personal documents, in addition to face verification. Active users who do not check can only withdraw, cancel orders or close positions.

According to the broker, which is the largest in the world in the cryptocurrencies, the decision is made to “define changes and improvements based on evolving global standards”.

“This will be done in phases to minimize the disruption to the user experience [UX]”, said the company.

Also, weeks ago, the broker reduced the daily withdrawal limit to 0.06 bitcoin (approximately US$3,000), against a previous limit of two bitcoins (approximately US$97 thousand).

Among the countries that demonstrate regulatory efforts to put pressure on Binance are:

  • USA
  • United Kingdom
  • Canada
  • Cayman Islands
  • Hong Kong
  • Various EU countries

Global Binance That Raises $100 Million and Targets IPO

On Thursday (19), Binance US announced that it aims to raise around US$ 100 million, but that there is concern on the part of investors regarding regulation.

Both The New York Times and Bloomberg reported that the cryptocurrency brokerage was in the early stages of a possible initial public offering (IPO).

Bitcoin brokerage will be sued

About 1,000 investors in cryptocurrencies are expected to sue Binance together with Liti Capital, according to an interview with its chief investment officer, executive David Kay.

In an interview with CNBC, Kay mentioned that “it will be a remarkable process”.

The brokerage firm’s CEO, Changpeng Zhao, has previously mentioned that the company does not have an official headquarters, which creates an obstacle to deciding which territorial jurisdiction will be.

It is worth noting that one of the investors who will enter the process is investor Fawaz Ahmed, who claims to have lost an amount of approximately US$ 6 million after an operational problem at the Binance.