The Brazilian Securities and Exchange Commission (CVM), a securities market authority, has banned Singapore-based crypto exchange Bybit from brokering securities in the Latin American country.
According to the declaration act shared on September 5th, Bybit must immediately suspend any securities offerings and intermediation services on their websites, social networks, and applications.
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The CVM noted that based on their investigation, Bybit aimed “to raise funds from investors residing in Brazil for investments in securities.”
The companies that want to provide securities intermediary services have to have approval from the Brazilian Securities and Exchange Commission. It turns out that Bybit doesn’t have such approval. More specifically, Brazilian CVM has given a green light to only one company to provide such services, Brazil’s stock exchange B3.
The declaration noted that Bybit must stop providing its services immediately, or the company will be fined 1,000 Brazilian reals (around $194) every day if they don’t comply with the CVM’s decision.
In April, the company announced its plans to launch various earning products and a non-fungible token (NFT) marketplace in Brazil. Moreover, the company promised that Brazilians will be able to acquire cryptocurrencies using Brazilian reals.
This is not the first time Bybit was disciplined by the regulators. At the end of June, The Canadian financial regulator known as the Ontario Securities Commission (OSC) penalized Bybit for not complying with securities laws. The company received a $1.9 million fine and a lifetime ban from operating in the country.
Moreover, at the beginning of July, The Brazilian Securities and Exchange Commission ordered Binance to stop providing derivatives trading services in Brazil.
by Gile K. – Crypto Analyst, BitDegree
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