CVM orders cryptocurrency broker to stop capturing Brazilian clients

A cryptocurrency, Forex and CFD brokerage captured Brazilians without permission from the CVM, which launched an investigation against the company.

In recent days, the Brazilian Securities and Exchange Commission has realized that the brokerage business carries great risks. Thus, it sent a blanket warning to the market for everyone to avoid using the platform.

One of the reasons is the Forex segment offered by yesterday in Brazil. In the country, the CVM prohibits platforms from offering trading on this market.

CVM has issued a warning against cryptocurrency and Forex brokerage and two other companies

In the CVM’s public warning, published in the Official Journal of the Union, it was clear that in addition to the cryptocurrency brokerage and Forex Ontega, two other companies were attracting Brazilians without permission. They are Green Pole LTD and Rehoboth LTD.

For the CVM, everything indicates that the companies operate in the same group, with a focus only on the Internet. That is, there is no physical headquarters for the company in Brazil.

“It remains evident that there are indications that the broker Ontega, under the responsibility of the companies Green Pole Ltd and Rehoboth Ltd, and the company Ontega Brasil through the global computer network on the site pt.ontega.com, on Facebook, in facebook.com /ontega.brasil, on Twitter, at twitter.com/Ontega_trading, and on YouTube, at youtube.com/@ontegabrasil5331, is seeking to attract clients residing in Brazil to conduct securities operations.”

If companies fail to comply with the CVM provisions, they may face fines and other penalties provided for in sanctions procedures.

Platform says it can’t serve Brazilians but still accepts PIX

In a question from live coins to the Ontega website, a situation that was curious to say the least attracted the attention of the platform.

This is because when accessing the domain with an IP from Brazil, a message appears that it is no longer possible to trade on the platform as a pop-up. When closing the message, customers can still surf the platform normally and also realize that the Pix symbol is still available as a payment method.

Platform banned from Brazil by CVM says it no longer accepts Brazilians but still accepts payments through PIX
Platform banned from Brazil by CVM says it no longer accepts Brazilians but still accepts PIX/Reproduction payments.

It is worth remembering that Pix, built by the Central Bank of Brazil, only works in the country and therefore shows that Ontega still maintains some level of support for Brazilians.

O live coins couldn’t contact the company for comment on why the Pix is ​​still available even after the CVM warning.

Ontega presents itself as a cryptocurrency broker in Brazil since 2021

Despite the CVM banning Ontega from Brazil for its performance as a Forex platform, the live coins found evidence that the company wasn’t just offering these services to Brazilians.

For example, some sites sold space to Ontega as a cryptocurrency exchange. In addition, the company maintains a page on YouTube called “Ontega Brasil”, where it presents itself as a “trusted” cryptocurrency broker since 2021.

Through YouTube, Ontega Brasil brokerage has been attracting cryptocurrency traders since 2021
Via YouTube, Ontega Brasil attracted cryptocurrency traders since 2021/Reproduction.

It is worth remembering that following the CVM warning, Ontega will have to suspend operations in the country and customers will have to look for ways to withdraw values ​​to avoid problems.

Source: Live Coins

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