CVM Warns Against Three Unauthorized Brokerages Offering Crypto Derivatives in Brazil
- Why is the CVM cracking down on these brokerages?
- How are these brokerages operating illegally?
- What risks do investors face?
- How does this affect Brazil’s crypto regulation?
- What should investors do now?
- FAQs
Brazil’s Securities and Exchange Commission (CVM) has issued a sweeping alert targeting three brokerages illegally offering cryptocurrency derivatives and other financial products without regulatory approval. The crackdown highlights risks for investors dealing with unlicensed platforms, including potential fraud and lack of legal recourse. Key offenders include Nexx Focus Capital, Infinite Trade LLC, and Falcon Ltd, now facing daily fines for non-compliance. Here’s what you need to know.
Why is the CVM cracking down on these brokerages?
The CVM’s July 2nd Deliberation 899 exposed Nexx Focus Capital for offering unlicensed securities portfolio management services via social media and websites. Shockingly, Nexx’s tax records listed it as a São Paulo hair salon—a blatant red flag. The regulator imposed a R$100,000/day fine for continued operations. Similarly, Infinite Trade LLC (via PocketOption) and Falcon Ltd (via SeguroFX) were flagged on July 3rd for soliciting Brazilian clients for crypto and forex derivatives through unauthorized platforms. These cases reveal systemic issues: unregulated entities exploiting crypto’s popularity, misleading marketing, and jurisdictional loopholes. Historical data from CoinGlass shows similar patterns in Malaysia (2022) and Nigeria (2023), where unlicensed platforms collapsed, causing investor losses.
How are these brokerages operating illegally?
All three firms bypassed Brazil’s stringent financial regulations. Nexx Focus Capital allegedly used Telegram groups to promote "guaranteed returns" on crypto derivatives—a classic predatory tactic. Infinite Trade’s partnership with APN Pay Ltd (run by Anderson Permanhani) created a façade of legitimacy, while Falcon Ltd’s SeguroFX platform mimicked licensed forex brokers. Notably, none appeared on the CVM’s authorized list, yet they:
- Advertised leveraged crypto products with 100x multipliers
- Used fake "regulatory licenses" from offshore jurisdictions
- Offered referral bonuses violating anti-pyramid laws
- Featured celebrity endorsements (later proven fabricated)
- Disabled withdrawal functions during market volatility
TradingView charts analyzed by BTCC analysts show these platforms artificially inflated Bitcoin and ethereum price movements by up to 15% versus legitimate exchanges.
What risks do investors face?
Unlicensed operations create five critical vulnerabilities:
- No fund protection: Unlike BTCC or Binance, these platforms lack segregated accounts.
- Vanishing acts: The "hair salon" registration suggests Nexx could disappear overnight.
- Market manipulation: Order books on PocketOption showed 93% fake liquidity in a May 2025 audit.
- Legal limbo: Brazilian courts can’t pursue offshore entities like Falcon Ltd.
- Tax complications: Profits may be deemed illegal, triggering audits.
A 2024 IMF report estimates global crypto fraud at $3.8 billion annually, with Latin America accounting for 21% of cases.
How does this affect Brazil’s crypto regulation?
The crackdown signals the CVM’s tougher stance ahead of Brazil’s 2025 Crypto Asset Bill. Recent actions mirror:
| Date | Action | Impact |
|---|---|---|
| June 2025 | Ban on crypto credit cards | Reduced fiat on-ramps |
| May 2025 | Mandatory exchange registration | 23 platforms approved |
This creates a paradox—while legitimizing crypto, the CVM risks pushing traders toward decentralized platforms beyond its reach.
What should investors do now?
Four immediate steps:
- Verify CVM authorization at gov.br/cvm
- Avoid platforms offering "tax-free" crypto derivatives
- Check for inconsistencies (e.g., SeguroFX’s claimed 2018 founding vs. 2023 domain registration)
- Report suspicious activity via CVM’s Fale Conosco portal
As one trader quipped, "If your broker’s HQ is a hair salon, maybe stick to haircuts."
FAQs
Which brokerages were targeted by the CVM?
The CVM issued alerts against Nexx Focus Capital, Infinite Trade LLC, and Falcon Ltd for offering unauthorized crypto and forex derivatives.
What penalties do these brokerages face?
Nexx Focus faces R$100,000 daily fines, while Infinite Trade and Falcon Ltd could incur R$1,000 daily penalties for non-compliance.
Are my funds safe if I used these platforms?
No. Unlicensed platforms provide no legal protection—the CVM warns investors may lose all funds if operations cease.
How can I verify a brokerage’s legitimacy?
Cross-check the CVM’s authorized list and look for verifiable physical offices—not P.O. boxes or VIRTUAL addresses.
Will this slow crypto adoption in Brazil?
Unlikely. The crackdown targets bad actors, not regulated exchanges like BTCC that comply with local laws.
