Brazilian Regulator Bans Forex Broker Offering BTC 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 2017.

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.