The Securities and Exchange Commission (CVM), directed the bitcoin and forex brokerage, InvestMarketsto stop attracting investors in Brazil after the company offered products without permission.
According to the autarchy, offering securities to Brazilian investors is the company’s biggest problem.
If you do not comply with the measures, the suspected company may have to pay a fine for trading without a permit.
InvestMarkets: brokerage offering bitcoin and forex trading has been suspended by the CVM
InvestMarkets is managed by Arvis Capital Limited and offers Bitcoin trading in pairs of Euro, Dollar and Pound Sterling. However, it also offers complex financial products and in the forex market.
Because it has a page in Brazilian Portuguese and makes offers with the Brazilian flag, the CVM has announced that the platform has been suspended in the country for trading without permission.
According to a CVM note signed by Francisco José Bastos Santos, current Superintendent of Relations with the Market and Intermediaries (SMI), published in the Official Gazette of the Union in recent days, the brokerage firm may pay a fine of up to 1,000 reais per day, in case of non-compliance.
“Declared to securities market participants and the general public that InvestMarkets and ARVIS Capital Ltd are not authorized by this autarchy to attract clients residing in Brazil, as they are not part of the distribution system in which Art. 15 of Law No. 6,385 of 1976.”
O live coins did not find representatives from the suspected company for comment and the space remains open for demonstrations.
Company remains under investigation by CVM
InvestMarkets cannot attract investors in Brazil, either directly or indirectly, according to the CVM. All offers in the country must be suspended immediately, but as determined by the live coinskeep happening.
If another company or individual participates in the process of attracting investors to the company, they may also be included in the administrative process.
The fine set by the CVM does not exclude the company from its responsibility for violations already committed. With this, the Brazilian autarchy continues to investigate the company through an administrative sanctions process, which should determine the sanctions for the company.
In Brazil, irregular supply in the capital market is a practice supervised by the CVM. That is, when a company offers a financial product without a license, a company, even an international company without a head office in the country, should receive attention from the regulator.
The CVM should start to participate more in the supervision of the cryptocurrency market in the coming years, after the passage of the law at the end of 2022.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
