The Securities and Exchange Commission (CVM) suspended a cryptocurrency brokerage that was operating in Brazil. In recent years, several brokers have arrived on the market offering services that are not authorized by the local authority in the Brazilian market.
One of those that registered problems with the CVM was even Binance, which in 2021 suspended Brazilians’ access to derivatives and the futures market.
However, other brokers come with forex products, binary options and other products that are not regulated in Brazil. It is common for some of these exchanges to also offer cryptocurrency options, which end up being included in the ban.
CVM suspends cryptocurrency brokerage that acted illegally in Brazil
Acting in Brazil illegally, according to the CVM, the companies “Raw Trading LTD”, “International Capital Markets Pty”, “IC Markets (EU) Ltd.” and “IC Markets Ltd” received an alert and will have to suspend their activities in the country.
According to the Superintendence of Market Relations and Intermediaries (SMI), it was identified that these four companies take investors to the ICMarkets website, a platform that offers trading in various assets, such as bonds, indices, stocks, futures, forex and even cryptocurrencies.
“Warning: Raw Trading LTD, International Capital Markets Pty, IC Markets (EU) Ltd. and IC Markets Ltd are not authorized by the CVM to broker securities.”
Through the CVM Declaratory Act 19,505, the autarchy determined that ICMarkets suspend its activities, including cryptocurrencies, for investors living in Brazil.
If the company fails to comply with the determination, it will be subject to a daily fine of R$ 1 thousand since the publication of the act. If any person or company is identified attracting customers for the business, whether through internet pages or any other means, they may also be fined.
In addition, infractions committed before the determination may have penalties yet to be decided after the regular sanctioning administrative process.
Another broker banned from operating in the country in 2022
This brokerage is the second that was prohibited by the CVM from acting in the capture of Brazilians at the beginning of 2022.
This is because, in the last week, cryptocurrency brokerage and other products Exness received an alert for its performance in Brazil. In other words, the CVM begins the year with an eye on businesses suspected of offering derivatives without authorization, prohibiting their operation.
Others that received an alert from the municipality last Tuesday were the companies KOI Global LLC, Ventura Group and Orotrader, forex and derivatives companies that were capturing Brazilian investors without authorization. These, however, do not work with cryptocurrencies.