Bybit Reacts After Brazil Watchdogs Bars the Exchange From Brokering Securities:
Singapore-based cryptocurrency exchange, Bybit, revealed that it is taking the necessary steps to ensure that it understands the requirements of the Securities and Exchange Commission of Brazil (CVM) with respect to its services.
This is coming after the Brazilian watchdogs banned Bybit from brokering securities.
The CVM released a declaratory act earlier this week that ordered the suspension of the crypto platform from brokering securities and intermediation services directly or indirectly via websites, applications, or social networks to Brazilian citizens.
The document revealed that Bybit was seeking to raise funds as a securities intermediary without the appropriate authorization to do so.
According to Cryptopotato, a Bybit spokesperson disclosed;
“Bybit is taking steps to ensure we fully understand the regulator’s requirements and demands regarding our derivatives trading offerings. We will respond accordingly with a view to resolving the matter amicably in the best interest of all parties. At the moment we are unable to comment on an evolving situation.”
CVM’s ban comes almost five months after the exchange disclosed plans to roll out a full suite of products and services to Brazilian users, which would enable them use Brazilian reals to purchase digital assets.
At the moment, Brazil’s stock exchange, B3, remains the only entity in the country that can offer securities.
Accurately, under CVM regulation, foreign entities can only have their securities traded on domestic exchanges.
Last year, Binance was ordered to pause crypto derivatives trading on its Brazil platform to comply with an order by the South American country’s securities authorities.