Brazil banned the crypto exchange Bybit from brokering securities

Brazil banned the crypto exchange Bybit from brokering securities

The Singapore-based cryptocurrency exchange Bybit has been prohibited from brokering securities by the Brazilian Securities and Exchange Commission (CVM).

Bybit is required to immediately stop all its securities’ intermediation services in Brazil or else will be fined

The Brazilian Securities and Exchange Commission mandated the suspension of Bybit’s public offering of any securities’ intermediation services, directly or indirectly. The firm is also not allowed to provide the same services even with the use of websites, bybit app, or social networks to Brazilians in a declaratory act released on Monday by CVM.

Without being authorized to function as a securities intermediary, Bybit was allegedly “trying to raise funds from investors resident in Brazil for investments in securities.” In Brazil, only Brazil stock exchange can offer Securities to Brazilians.

Brazilian Securities and Exchange Commission ordered that Bybit must comply with the restriction right away otherwise the commission will fine it daily at the rate of 1,000 Brazilian reals which is equivalent to $194.

Bybit navigating through potholes in Brazil for operation

Bybit navigating through potholes in Brazil for operation
Image source: Bybit official Twitter

Previously in April, Bybit announced the debut of earning products and a non-fungible token (NFT) marketplace, as well as the ability for Brazilian customers to buy cryptocurrencies directly using Brazilian reals.

Later on in June, Bybit said that it was actively monitoring the Brazilian debate over cryptocurrency regulation in order to adopt the right course of action and avoid a repeat of Binance, which was shut down by the Brazilian commission in 2020.

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