The CVM has stated that only the B3 Stock Exchange in Brazil is permitted to act as a securities intermediary in the country.
Bybit, a cryptocurrency exchange based in Singapore, was recently barred from acting as a securities broker by the Brazilian Securities and Exchange Commission (CVM).
As of Monday, per a declaratory act published by the CVM, Bybit is prohibited from “the public offering of any securities intermediation services, directly or indirectly, including through the use of websites, applications, or social networks” in Brazil.
In the words of the CVM, Bybit “sought to raise funds from investors residing in Brazil for investments in securities” without being registered as a securities intermediary. The B3 Stock Exchange is the sole securities exchange authorized to trade in Brazil.
When asked for comment, Bybit remained silent.
The CVM also stated that Bybit had 24 hours to comply with the ban or face a daily fine of 1,000 Brazilian reals (approximately US$194).
Bybit announced the release of earning products and a non-fungible token (NFT) marketplace in April, along with the ability for Brazilian users to purchase cryptocurrencies with Brazilian reals. Bybit, according to a June 2018 interview with CoinDesk InfoMoney, is keeping a close eye on the crypto regulatory debate in Brazil so that it can avoid a repeat of Binance’s suspension by the CVM in 2020 and instead take the most appropriate action.