Cryptocurrency Gets XM Global Banned In Brazil

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Brazilian Securities Regulator Bans Local Bitcoin and Forex Broker XM Global Limited

The regulators in Brazil have banned XM Global Limited from the country. The company operated in the forex and crypto market before the decision was made by the Brazilian Securities Commission (CVM).

According to reports from Cointelegraph Brasil, the CVM ordered the immediate suspension of all the company’s activities in the country in both the forex and derivatives space. Curiously, if the company does not comply with the decision, it will have to pay a daily fine of $1,000 BRL (around $240 USD), which should be almost nothing compared to the profits of the company.

What caused the problems wasn’t anything related to crypto, however. Forex trading is not allowed in Brazil, so no company can offer investments in this market legally. XM Global operated illegally in the country, probably knowing that its services would not be compliant with the locals.

If the company does not cease to offer its products, it may eventually suffer more sanctions, although. XM Global is a very popular platform around the world and has been operating in Brazil since 2020.

There are three companies that are currently being investigated by the CVM right now: Blue Benx, NYC Technology and A2 Trader. All of them are accused of being pyramid schemes and to be linked to illegal multi-marketing schemes. As they are linked to highly illegal operations, they are far more likely to receive harsher sanctions than just fines, though.

Brazilian Securities Commission (CVM) Issues a Cease and desist Order to XM Global Limited

The Brazilian Securities Commission (CVM) through its Superintendence of Market Relations and Intermediaries (SMI) has officially issued a cease and desist order to XM Global Limited. The order was issued after CVM found out that XM Global Limited has been operating an exchange offering forex options in Brazil, yet the latter is prohibited.

Per the public warning letter, XM Global Limited operating under www.xm.com has been illegally offering forex trading options linked to Bitcoin to Brazilian residents. Acting in its legal mandate, CVM has ordered the closure of XM Global Limited firm immediately.

XM Global Limited Faces Fines

Although one of the biggest foreign exchange trading platforms in Brazil, XM Global Limited, has found itself on the wrong side of the law by facilitating the trading of BTC against the dollar. Now they have to close down or face fines of up to R $1000 that is 239 US dollars daily.

Though its platform went live in 2020, it’s now that CVM has ordered its closure. XM Global Limited also used social media platforms to market its platform.

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With the execution of the order underway, CVM can now focus on carrying out investigations on three other firms present in the crypto sector. The three are NYC Technology, Blue Benx, and A2 Trader. The regulator believes the three firms are providing multi-level marketing services linked to cryptocurrencies to Brazilian residents. However, its investigations showcase the latter are pyramid schemes after scamming Brazilians.

As the CVM deals with sham crypto firms, on the international scene, CVM counterparts are also stepping up to protect their residents.

In August Philip Chitalu, CEO of the Zambian Securities and Exchange Commission come out to warn Zambians against OnyxCoin saying the firm doesn’t have approval from his agency. According to him, Kwakoo, the firm behind OnyxCoin, isn’t authorized to offer investment advice or solicit funds either within or outside the country.

Besides Zambian SEC, their counterparts in Thailand also come in out in August to warn the public against some foreign agencies operating in Thailand illegally. In the latter case, the firms have a presence online but are based overseas.

While the above depicts challenges present in the crypto sector, regulators in every region are working hard to get rid of sham exchanges. For CVM, it has banned trading of such assets in Brazil.

Brazilian Securities Regulator Bans Bitcoin, Forex Broker

Brazilian financial regulators have banned a forex firm that was also offering Bitcoin options.

The Brazilian Securities Commission (CVM) has banned a forex broker offering Bitcoin (BTC) options, Cointelegraph Brasil reported on Sept. 25.

On Sept. 25, CVM published a public warning of irregular action concerning XM Global Limited through the Superintendent of Market and Intermediary (SMI) Relations. In its warning, the CVM states that XM Global Limited is not authorized to operate in Brazil or deal with customers residing there.

The CVM ordered the immediate suspension of investment offerings in the forex or derivatives space. If the condition is not met, the firm will be fined 1,000 reals ($239) per day.

Cointelegraph Brazil reports that XM is a major trading platform, but the forex market is banned in Brazil and no company is authorized to sell these kinds of options in the country. The company started trading Bitcoin against the dollar in 2020.

As Cointelegraph reported at the end of August, Thailand’s securities regulator has also warned the public about scam entities posing as legal digital currency trading firms operating overseas.

That same month, Zambian Securities and Exchange Commission CEO Philip Chitalu warned the public that the creator of the OnyxCoin cryptocurrency, Kwakoo, is not licensed to give investment advice or solicit funds from within and outside the country.

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