Cryptocurrency may be booming in Latin America, but exchanges and brokers run the risk of falling afoul of regulators – with government agencies in Brazil and Mexico looking to crack down on non-compliant platforms and brokerages.
The Securities and Exchange Commission of Brazil, known locally as the CVM, says that it has launched investigations into “at least eight” cryptocurrency-related ventures in 2019 – a possible sign that it is growing increasingly wary of Brazilian exchanges. Last year, the CVM only investigated one cryptocurrency-related company.
The CVM is primarily a stock market regulator but has also been given the power to police crypto exchanges and brokers should they offer products that the agency considers to be securities.
Per a report from media outlet Criptonoticias, some of the CVM’s investigations are still only “precautionary” at this stage, and the most recent investigation involves crypto exchange Atlas Quantum.
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However, the CVM has the power to impose a range of sanctions on offenders. The agency has called for police involvement in three of its 2019…
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Author: Tim Alper