- The Brazilian SEC ordered a ban on Bybit exchange.
- CVM says Bybit attempted to raise funds from Brazilian investors for securities investments.
The Brazilian Securities and Exchange Commission (CVM), recently announced the ban of prominent cryptocurrency exchange, Bybit. According to the official announcement, the regulatory body ordered the suspension of Bybit, from engaging in the securities brokerage business.
CVM stated:
“Public offering of any securities intermediary services, directly or indirectly, to Brazilian users, including through the use of websites, applications or social networks.”
As per CVM, Bybit was trying to raise funds from Brazilian investors for securities investments despite the company’s lack of authority to function as a securities intermediary. The Brazilian authority also stated that the exchange is not eligible to offer securities trading, and only the Brazilian stock market B3 is permitted for this.
CVM’s Action Over Exchanges
The regulatory body asserted that Bybit should follow the ban immediately. Otherwise, a daily fee of 1,000 Brazilian reals might be imposed in exchange, for violating the restriction. However, Bybit has not yet reacted to the statement made by the Brazilian SEC. Moreover, the Brazilian SEC recently ordered Binance to suspend derivatives trading services in Brazil immediately.
The Singapore-based exchange, Bybit is one of the leading crypto trading platforms in the world. The firm has already created a strong presence in the crypto sector. Now the firm is adapting more strategies to expand its functionalities across the globe, especially in Europe and Asia.
Recently, Bybit has collaborated with crypto payment company Circle Internet Financial, to make it easier for the exchange to serve as a gateway for institutional and retail USDC-settled products.
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