Multiple Brazilian brokerage firms on March 2 filed a complaint against Malta-based cryptocurrency exchange platform Binance, alleging that the company is operating illegally in Brazil, DCI Digital reported.

According to the complaint, filed with Brazil's CVM securities commission and federal public ministry, Binance is selling derivative products linked to cryptocurrencies without approval by Brazilian regulators.

The complaint further alleges that Binance offers a crypto futures market service in Brazil despite the absence of legislation for this type of product, as the central bank does not yet consider virtual currencies as a financial asset, the news outlet reported.

The products and services on offer "display a worrying disregard for compliance with the Brazilian rules" and place investors and the credibility of regulators at risk, said Rodrigo Monteiro, executive director of the ABCripto association, which signed the complaint.

In a statement, Binance said it is the target of "unfounded and incorrect" accusations and that the claims in the complaint "are anti-competitive in nature."

The company, which entered Brazil in 2019, has established a physical office in the country and signed partnerships with payment providers to enable its platform to interact with the local financial system.