The Securities and Exchange Commission (CVM) remains alert to the actions of foreign platforms seeking to attract Brazilian investors without permission. The youngest to report problems to the municipality is the brokerage Nixsewhich even promised a cheaper purchase price for bitcoin and other financial assets.
According to the Superintendence of Relations with the Market and Intermediary (SMI), there were indications that the company is seeking to attract clients residing in Brazil through a securities investment website.
In the warning, the CVM clarifies that the company is operating erratically in Brazil and that all investors should be aware of the risks associated with using Nixse financial services.
Why did the CVM ban brokerage from Brazil?
It is worth remembering that the CVM is responsible for overseeing all activities in the Brazilian financial market.
So, regarding the Forex (Foreign Exchange) market, the CVM does not recognize foreign exchange trading as a regulated market in the country.
According to the CVM, foreign currency trading may only be conducted by financial institutions authorized by the Central Bank. This means that forex trading is considered illegal by individuals in Brazil and is not regulated by the CVM.
Because Nixse traded Bitcoin and other cryptocurrencies, as well as foreign currencies, it came under the radar of regulators, who have now placed the company on a watch list.
“WARNING: Nixse Ltd. does not have a CVM authorization to broker securities or solicit funds from investors for investments in securities.
The CVM warns investors about the risks associated with trading foreign currencies in the forex market. In particular, those foreign unregulated brokers, which may not provide investors with the necessary guarantees.
CVM’s recommendation is that investors seek advice from financial market professionals before investing in forex or any other type of investment.
What is the penalty for non-compliance?
By CVM Declaratory Act 20.610, the Autarchy has mandated the immediate suspension of any public offering of securities brokerage services, whether direct or indirect, including through websites, applications or social networks, due to the fact that they are not part of the art distribution system provided. 15 of Law 6.385.
If the CVM provision is not passed, companies and individuals found to have participated in the irregular acts will be subject to a daily fine of R$1,000.00.
The CVM, published in the Official Gazette of the Union, makes it clear that the stoppage order is a precautionary measure against the suspected company.
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.
