Brazilian Regulators Grill Mercado Bitcoin Over Token Sales

Brazilian Regulators Grill Mercado Bitcoin Over Token Sales
  • The exchange must disclose how much money was collected via the sale of tokens.
  • Parent Firm 2TM criticized Brazil’s governing bodies on the regulation of crypto.

Securities authorities in Brazil have demanded details on the digital tokens produced by Mercado Bitcoin. The largest cryptocurrency exchange in Latin America.

Mercado Bitcoin has been asked by Brazil’s Securities and Exchange Commission (CVM) to provide details on the fixed-income tokens it has sold over the previous two years. The article was first reported by the Estado newspaper on Tuesday.

Full Disclosure Demanded

According to the article, the exchange must also disclose how much money was collected via the sale of tokens. As well as a list of the people or organizations that made the purchases.

Although Estado’s article did not identify the tokens by name. It did disclose that they were distributed via blockchain technology and were intended to be backed by physical properties. They were also “low risk and high yield” in the fields of “consortium, energy, writs of payments, and receivables,” it said.

Mercado Bitcoin collaborates with the CVM and Brazil’s central bank to “contribute to the construction of regulations for the sector,” the company said.

The statement read:

“We do not make public offerings of securities outside the scope of the authorizations we hold as an authorized crowdfunding platform and investment manager.”

The parent business of Mercado Bitcoin, 2TM Group, has reduced its workforce in response to the recent decline in the value of Bitcoin and other cryptocurrencies. Just two months after announcing another wave of layoffs, 2TM implemented a 15% reduction in the workforce earlier this month.

For their lack of consistency, 2TM has also criticized Brazil’s governing bodies on the regulation of cryptocurrency.

Recommended For You:

Crypto Exchange Binance Plans Two New Offices in Brazil

A trader himself, Rossi has 7 years of experience trading in the forex market and the passion for writing has brought him to Newscrypto. He is the perfect combination of market knowledge and writing skills, making him one of the most sought-after writers on cryptocurrency.