According to Marina Copola, director of the Securities and Exchange Commission (CVM), linked to the Ministry of Treasury, the measures to repress platforms that operate illegally in Brazil, including some sportsbooks, are ineffective. According to her, regulators are “mopping up ice” daily in this process. She made the statement on Thursday (22).
As an example, she cited the mechanism known in the market as a “stop order”. This is a precautionary measure that provides for the immediate interruption of the supply of a product made available irregularly. In addition, the suspension of the service entails a daily fine in the event of non-compliance.
“I am not exaggerating in saying that these measures we have to repress this type of supplier are absolutely ineffective because these suppliers receive the stop order, close that platform, open another identical one and continue doing so. We are, with regard to this particular conduct, mopping up ice every day,” he said.
Marina Copola was at the 5th Brazilian Internet Congress
Marina was part of the program of the 5th Brazilian Internet Congress, organized by Abranet (Brazilian Internet Association), in partnership with ITS Rio (Institute of Technology and Society), in Brasília.
In her speech at the congress, Marina Copola assessed that the supply of unregulated products “exploded” with the growth of the relationship between people and social networks. For her, there was an exponential increase in the use of sportsbooks after the pandemic. The CVM director thus saw the emergence of a new investor profile, in search of a gamification experience.
In addition to sportsbooks, it brought the experience of Forex platforms. In this case, they returned revamped. Also, CFD platforms (derivatives that allow speculation on the price variations of indexes, stocks, currencies, commodities, cryptocurrencies, etc.), and other products that are not registered in Brazil and are freely offered to Brazilian investors.
According to Copola, the best way to address the problem and protect investors is to adopt multidisciplinary measures in partnership with various entities. She argues that there should also be control over the issue of payments. “These illicit activities can rarely be combated with just one shot. We need to join forces,” she said.
