The Brazilian Securities and Exchange Commission (CVM) banned the Singapore-based cryptocurrency exchange Bybit from brokering securities.
In a declaratory act published on Monday, the CVM ordered the suspension of “the public offering of any securities intermediation services, directly or indirectly, including through the use of websites, applications or social networks” by Bybit to Brazilians.
According to the CVM, Bybit was “seeking to raise funds from investors residing in Brazil for investments in securities,” without the company having authorization to act as a securities intermediary. In Brazil, only Brazil’s stock exchange B3 can offer securities.
Bybit did not respond to a request for comment.
The CVM added that Bybit must comply with the ban immediately or else the commission will impose a daily fine of 1,000 Brazilian reals (equivalent to US$194).
In April, Bybit announced that it allowed Brazilian users to acquire cryptocurrencies using Brazilian reals and the launch of earning products and a non-fungible token (NFT) marketplace.
In June, Bybit told CoinDesk InfoMoney that it was closely following the crypto regulatory debate in Brazil, in order to take the best possible approach and not repeat the case of Binance, which was suspended by the CVM in 2020.
This article was translated by Andrés Engler, and edited by CoinDesk. The original Portuguese can be found here.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.