Brazil's Securities and Exchange Commission (CVM) banned COinan from offering encrypted derivatives trading to local users

On July 6 local time, Brazil's Securities and Exchange Commission (CVM) ordered Cryptocurrency trading platform Coinan to immediately stop its derivatives trading service in Brazil. In a statement dated July 2, CVM said Coinstone was not authorised to "act as a securities intermediary" in Brazil and threatened coinstone with a daily fine of 1,000 reais ($186).

Coinstar is not allowed to sell or offer derivatives of any kind in Brazil without CVM approval, regardless of the underlying assets of the contract, according to the statement. Because Brazilian law treats all derivatives as securities. For now, though, users can still access Coinan's derivatives portal from its Brazilian IP address. As of press time, coin has not responded to the matter.

According to CoinTelegraph Brazil, this is the first time the CVM has spoken out against cryptocurrency derivatives trading. It is unclear how the move will affect other trading platforms.

The original address: https://www.coindesk.com/binance-ordered-to-halt-offering-derivatives-trading-in-brazil

http://www.in.gov.br/en/web/dou/-/ato-declaratorio-n-17.961-de-2-de-julho-de-2020-265060074

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