Reports have emerged that the broker, XM Global, has received a ban from the Brazilian Securities Commission (CVM) for illegally providing cryptocurrency (BTC) choices.
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The judgment came in September when the CVM passed a warning to citizens of Brazil regarding XM Global. They announced that the broker is not properly regulated to provide clients with cryptocurrency in the region.
Cryptocurrency trading has been under scrutiny in several locations and by many authorities. Bitcoin options seem enticing but they are dangerous and put investments at risk. Markets dealing with digital assets are volatile and lead to high loss of funds.
Possible Fine For XM Global
Brazil’s trading authority stated expressly that XM Global was to stop offering investment options. If this is not done, the company will be required to pay $240 every day it stays in the market flouting the mandate.
The authorities warned that citizens are to be careful as some other companies will try to offer them these options. Trading these assets is not allowed in the region and no properly licensed firm in this region is authorized to give access to trading this asset.
Scammers Use Cryptocurrency Fraud In Brazil
Digital assets trading has led to the loss of funds for several traders in Brazil. This is basically because like we mentioned, it is not regulated. Many con artists have chosen to operate under the radar of the authorities and scam many people.
It is majorly frowned upon but still continues to grow in popularity. There was a report early this year that there are more Bitcoin account owners that brokerage account owners in the country. Although Brazilian trading regulators have opined that they recognize this as a potential bug market, they still do not allow it.
XM Global Still Popular
XM Global is the latest to be shot down by the bullets of criticism in South America. The broker is well known in the market for offering very competitive spreads and good trading conditions. Many traders choose it and it has clients from several countries. However, this offer of Bitcoins is frowned upon and they have been told to fold the tent of this operation.