The binary options brokerage IQ Option has been ignoring the CVM (Securities and Exchange Commission) order that it should stop attracting clients in Brazil. The company continues with operations in the country and, even with the ban, advertises on Google ads.
The report found IQ Option ads both in automatic advertising (adsense) on different sites and in spaces within Gmail.
In the CVM's view, the broker had been offering derivative investment, considered security, without authorization. In response to the ban, IQ Option previously said it would continue its negotiations, mentioning that the agency only limited the company from advertising.
However, the ads available on Google and Gmail show that the broker has also decided to face the ban on advertising.
Sought by the report, IQ Option did not manifest itself until the closing of this text. Google Brazil was also questioned by the Bitcoin Portal, but it also hasn't commented yet.
The lawsuit already underway against the brokerage by the CVM provides for a daily fine of R $ 1,000 in case of non-compliance – in addition to other punitive measures provided for in Article 11 of Law 6,385 / 76, which created the regulatory body.
In addition to the CVM ban, IQ Option is also the target of customer complaints on the Reclame Aqui platform.
In the last six months, according to public data from the platform consolidated until the end of April, there were 663 complaints. When considering complaints made in May (until the 22nd), the number jumps to 1,244. There are at least 580 occurrences in this month alone, until the closing of this report.
In addition to the IQ Option
The stop order against IQ Option does not mean that the Forex market is prohibited in Brazil. The so-called “derivative contract in exchange for foreign currency pairs” is shaped by what Law 6,385 / 76 calls “other derivative contracts, regardless of the underlying assets”, which is security.
In a booklet on Forex, the CVM recognizes that elements such as the internet facilitate the approach of the Brazilian investor with agents abroad. However, he emphasizes that the formats to be offered in Brazil must follow the rules provided for in Brazilian law and regulation.
The problem is that in order to operate in this market, the interested company must first seek the CVM and seek either the registration or the dismissal of it. Otherwise, the offer of this type of investment will be illegal and the company will run the risk of receiving a Stop Order – as happened with the IQ Option.
CVM's announcements, however, show that these companies have been trying to operate in the Brazilian market even without the necessary endorsement. In all, Forex brokers account for seven of the nine “Stop Orders” announced by the municipality in the past 30 days.
In addition to the IQ Option, Start Invest, Tradear, Ava Trade, CIB FX, Pepperstone Group and Paladin FX were also punished.
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This source of this article is portaldobitcoin.com.