The regulators in Brazil have banned XM Global Limited from the country. The company operated in the forex and crypto market before the decision was made by the Brazilian Securities Commission (CVM).
According to reports from Cointelegraph Brasil, the CVM ordered the immediate suspension of all the company’s activities in the country in both the forex and derivatives space. Curiously, if the company does not comply with the decision, it will have to pay a daily fine of $1,000 BRL (around $240 USD), which should be almost nothing compared to the profits of the company.
What caused the problems wasn’t anything related to crypto, however. Forex trading is not allowed in Brazil, so no company can offer investments in this market legally. XM Global operated illegally in the country, probably knowing that its services would not be compliant with the locals.
If the company does not cease to offer its products, it may eventually suffer more sanctions, although. XM Global is a very popular platform around the world and has been operating in Brazil since 2017.
There are three companies that are currently being investigated by the CVM right now: Blue Benx, NYC Technology and A2 Trader. All of them are accused of being pyramid schemes and to be linked to illegal multi-marketing schemes. As they are linked to highly illegal operations, they are far more likely to receive harsher sanctions than just fines, though.