BTC-offering forex broker banned in Brazil

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The Brazilian capital markets regulator has banned XM Global, a foreign exchange broker that offered BTC options. According to the Securities Commission (CVM), the company isn’t authorized to operate in Brazil and has been offering the products illegally.

According to a report by Exame, XM Global has been offering its services through its website and social networks. Its products include forex trading and BTC options. However, according to the superintendency of the agency, it has been doing so without the proper authorization.

In a notice published on its website, the regulator ordered the company to cease any operations it has in Brazil immediately. If it ignores the ultimatum, the regulator will impose a daily 1,000 reals ($240) fine.

Established in 2009, XM has been offering forex trading services globally through its website, claiming to have over 2.5 million users in 196 countries. It started offering its users BTC trading in 2017, capitalizing on the surge in crypto popularity. The company also offers trading services in commodities, precious metals, stock CFDs and equity indices.

XM reportedly told the publication that it would respond to the regulator’s accusations soon.

CVM also recently revealed that it was investigating three other companies dealing in crypto which it accused of being pyramid schemes. The companies, A2 Trader, Blue Benx and NYC Technology have been promising their clients huge returns which the regulator believes are impractical.

The regulator’s crack down on crypto-related pyramid schemes has managed to bring down several fraudulent companies in Brazil. Earlier this year, CVM banned Investimento Bitcoin, a company that had become quite popular in the country by running ads on the leading media houses.

Despite the presence of crypto-related fraud in the country, the Brazilian crypto industry has continued to thrive. In July, a coffee farming cooperative announced that it would be launching its own coffee-backed crypto. The crypto will enable the farmers to purchase farm supplies such as fertilizers and farm machinery. The farmers can also purchase other goods such as food and cars, with the cooperative planning to launch a crypto exchange where the farmers can sell their tokens.