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CVM issues stop order against six cryptocurrency companies for irregular operations in Brazil
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The Securities and Exchange Commission (CVM) announced this Friday (22), measures against six companies that operate with cryptocurrencies and operate irregularly in Brazil.
As reported on its website, the agency identified practices that violate Brazilian legislation, involving attracting clients and intermediating securities without due authorization.
“Through CVM Declaratory Act 22,733, the Autarchy ordered companies to immediately suspend any public offer of securities intermediation services, directly or indirectly, including through websites, applications or social networks”, highlighted the statement of the municipality.
Although Brazil does not yet have regulations for the cryptocurrency market, the CVM prohibits companies from offering trading in the Forex market, with and without cryptocurrencies.
CVM and Forex market
The CVM regulates financial operations in Brazil, including those related to the Forex market. However, no broker based in the country is authorized to directly offer foreign currency pair trading to residents.
In Brazil, B3 (Brasil, Bolsa, Balcão) is the only institution authorized to offer operations linked to foreign currency pairs. Unlike the international scenario, where specialized brokers allow direct access to Forex, in Brazil, the market is integrated into B3’s operations.
At B3, investors have access to the foreign exchange market through futures contracts or currency derivatives, such as the US dollar (USD) or the euro (EUR).
These financial instruments allow speculation on the appreciation or depreciation of currencies, but they work differently from the traditional Forex market, which is widely known for allowing leveraged trading between foreign currency pairs.
Unlike global Forex, which is decentralized and operates 24 hours a day, the forex market on B3 follows exchange hours. Brazilian legislation requires that all transactions related to securities and foreign exchange be regulated by the CVM.
The popularity of Forex has, in recent years, attracted misleading promises of quick and guaranteed profits. Scams involving “account management” or “investment robots” are common and have already resulted in losses for several Brazilian investors.
CVM issues stop order against six cryptocurrency companies for irregular operations in Brazil
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CVM issues stop order against six cryptocurrency companies for irregular operations in Brazil
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CVM issues stop order against six cryptocurrency companies for irregular operations in Brazil
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CVM issues stop order against six cryptocurrency companies for irregular operations in Brazil
