The CMF recommended that investors check on its website whether a company has the authorization to operate. The Chilean government agency cited a recent restriction on Binance in the UK as a precedent.
Chile’s Commission for the Financial Market (CMF) recently reported that the Binance exchange could not provide its services in that nation.
In a statement, the CMF said that the Binance investment platform is an unsupervised entity. For that reason, it does not have permission to operate in the South American country.
The regulator also referred to the alert the British Financial Conduct Authority (FCA) issued in July. In the UK, Binance has no authorization to offer options, futures, and publicly traded notes.
After issuing the warning, the Chilean CMF recommended that people consult their website before investing. They seek that the interested parties verify whether the companies have a registration with the Chilean authorities.
The Commission for the Financial Market does not imply that Chileans cannot access the Binance platform. At this time, there are open buy and sell orders in Chilean pesos with Chilean means of payment for all the currencies of the P2P exchange.
The same document mentions two other companies that offer investments in Chile without the registration that this organization considers necessary. Those firms are Omegapro, a multi-level marketing network, and Swedencap, which defines itself as an international financial broker.
Binance Has Problems Trading in Other Countries
That is the first such announcement from a Latin American market regulator, but countries like Italy have already said similar statements. Without directly attacking Binance, the Italian financial authority warned about alleged risks of trading cryptocurrencies.
The operations of the exchange led by Changpeng Zhao are undergoing total or partial restrictions in several countries. Binance cannot provide its services in the United Kingdom, Cayman Islands, Thailand, Singapore, Japan, and Malaysia.
There is tremendous regulatory pressure globally against the largest cryptocurrency exchange by trading volume. That has prompted the company to look for a new CEO who has more experience in this area.
Faced with these limitations to operate, Zhao considers the change in the direction of the platform is necessary. Besides, he believes that the company will have to adapt to the new regulatory requirements for its activities in various countries.
In recent days, Bryan Benson, Binance’s managing director for Latin America, mentioned that the regulations do not take the company by surprise. He said that these measures are a very natural thing to see. He stressed that, despite the discomforts, this would be a stage in the process towards the mass adoption of cryptocurrencies.
There is a lot of fear of using crypto assets among world authorities, which has led them to adjust regulations on them. Several countries have restricted the operations of exchanges and have warned people not to invest in them. Despite that situation, the relevance of Bitcoin will not stop growing while those problems implement better mechanisms to help users.
By Alexander Salazar
