Abai proposes Forex and CFD market regulation in Brazil

The Brazilian Association of Investment Advisors (Abai) has submitted a proposal to the Ministry of Finance requesting specific regulations for international Forex and Contract for Difference (CFD) platforms operating in Brazil. The proposal, signed by president Diego Ramiro and superintendent Francisco Amarante, was also sent to the Central Bank and the Securities and Exchange Commission of Brazil (CVM).

Currently, the CVM prohibits the public offering of these products without authorization, often issuing stop orders and fines. However, Abai argues that the lack of a formal licensing regime for retail investors drives Brazilians toward unauthorized foreign platforms that operate without state supervision, often utilizing extreme leverage without standard market protections.

Abai notes that Forex is the world's largest financial market, with an average daily volume of US$ 9.6 trillion, and is essential for foreign trade settlement and exchange rate hedging. The association suggests following international models, such as those in the European Union, which regulate the market through strict controls rather than outright prohibition.