The Securities and Exchange Commission of Brazil (CVM) has banned Singapore-based cryptocurrency exchange Bybit from brokering “securities” within the country.
See related article: Thailand mandates warnings on crypto ads
- The CVM released a declaratory act, in an announcement on Monday, that ordered the suspension of Bybit’s security offerings and intermediation services directly or indirectly through the use of websites, applications, or social networks to Brazilian citizens.
- According to the CVM, the crypto exchange, which also provides spot and derivatives trading services, was seeking to raise funds as a securities intermediary without the appropriate authorization to do so.
- In Brazil, foreign issuers can only have their securities traded on local exchanges, in accordance with CVM regulation. Binance, another cryptocurrency exchange, was ordered to stop trading crypto derivatives on its Brazilian platform last year.
- The declaratory act also stipulated that Bybit comply with the ban immediately or face a daily fine of 1,000 Brazilian reals (US$194).
- In April, Bybit announced that it would offer a full suite of products and services to Brazilian users, allowing them to use Brazilian reals to buy crypto assets.