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HomeLaw & PoliticsBrazil SEC bans crypto exchange Bybit from brokering securities

Brazil SEC bans crypto exchange Bybit from brokering securities

Singapore-based crypto exchange Bybit has been banned from brokering stocks by the Brazilian Securities and Exchange Commission (CVM)

The Brazilian Securities and Exchange Commission (SEC), which formerly resisted taking the lead in the country’s regulation of crypto-assets, has now altered its position and is now pushing for substantial reforms in the legal framework to better regulate cryptocurrencies. According to the sources, the Singapore-based crypto exchange Bybit has been banned from brokering securities by the Brazilian Securities and Exchange Commission (CVM).

The CVM mandated the suspension of ByBit’s “public provision of any securities intermediation services, directly or indirectly, including via the use of websites, apps, or social networks” to Brazilians in a declaratory act released on September 5.

ByBit was reportedly “seeking to raise funds from individuals resident in Brazil for investments in securities” without being authorised to act as a securities intermediary. The B3 stock market in Brazil is the sole place where securities can be offered. ByBit must adhere to the restriction immediately, the CVM continued, or the commission would levy a daily punishment of 1,000 Brazilian reals (about $194).

In April, Bybit announced the debut of income goods and a non-fungible token (NFT) marketplace as well as the ability for Brazilian customers to buy cryptocurrencies using Brazilian reals.

ByBit disclosed to CoinDesk InfoMoney in June that it was closely following the debate in Brazil on cryptocurrency regulation in order to take the appropriate course of action and prevent a repeat of Binance, which was shut down by the CVM in 2020.

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Vaishali Goel
Technology enthusiast, explorer and academic scholar. Currently exploring the crypto world. Join me in my journey to see how crypto, NFT and Metaverse will change the world.
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