The Securities and Exchange Commission (CVM) issued an alert last Monday (17) against a cryptocurrency brokerage operating in Brazil. The group of companies that would be attracting investors in the country for derivatives does not have authorization from the federal autarchy.
In such cases, it is common for the commission to send a warning to the market so that all investors are careful with the actions of companies, which can cause losses to investors because they are not authorized to operate.
Cryptocurrency brokerage is targeted by the CVM, which alerts the market to the dangers of the business
The CVM has issued a warning against cryptocurrency exchange “Exness” in recent days. With some information on the site in a foreign language, the brokerage company created a page in Portuguese and began to attract investors in Brazil.
To carry out this task, the CVM found that the company, allegedly fraudulent, even used profiles on social networks to act in attracting customers.
“The. it was evidenced the existence of evidence that the companies named NYMSTAR LIMITED, EXNESS BV, VENICO CAPITAL LIMITED and VLERIZO (PTY) LTD, who present themselves as responsible for the exness page. com/pt, come through the world wide web, through the aforementioned website and profiles on social networks, seeking to raise funds from investors residing in Brazil for investments in securities; B. the aforementioned persons are not authorized by this Securities and Exchange Commission to act as securities intermediaries.”
On its website, still available on the internet, the company offers investments in Forex, an activity banned in Brazil. In addition, market indices, stocks, precious metals and even energy are among the services offered by the suspicious company.
Listed cryptocurrencies and leverage option
Listing several cryptocurrency trading pairs, this broker claims on its page that the platform works every day, uninterrupted. It is noteworthy that the option of leverage in operations is also allowed by the company that accepts only Bitcoin as a deposit.
It is worth remembering that to invest in a cryptocurrency exchange, it is important that a search is carried out on the company’s reputation and whether it has a minimum amount of weight in the face of market confidence in its systems, which is not the case with Exness.
In any case, the CVM warns that this cryptocurrency brokerage should withdraw its funding from Brazil, under penalty of a daily fine of BRL 1,000.