Bybit, the Singapore-based crypto exchange, has been banned from brokering securities by The Brazilian Securities and Exchange Commission (CVM).
The CVM enforced the suspension of ByBit’s “public provision of any securities intermediation services, directly or indirectly, including through the use of websites, applications, or social networks” to Brazilians in a declaratory act released on Monday.
The Brazilian SEC claimed that Bybit was looking to raise funds from local investors via securities investments without being cleared to act as a securities intermediary. So far, securities can only be offered by B3 stock exchange in Brazil.
Bybit, the CVM continued, must adhere to the ban immediately. Otherwise, the commission would charge a daily fine of 1,000 Brazilian reals (about $194).
Around four months ago, Bybit announced the launch of earning products and a non-fungible token (NFT) marketplace as well as enabling Brazilian clients to use Brazilian reals to purchase cryptocurrencies.
ByBit remarked in June that it was actively monitoring Brazil’s regulatory debate in an effort to take the right course of action and avoid Binance’s mistakes, which caused Binance to be temporarily shut down by the CVM in 2020.
In July, the Brazilian Chamber of Deputies announced that they would hold off crypto law voting until after the presidential elections on October.
The handling of a budget guidelines law and a planned constitutional amendment for the medical sector have taken precedence on the legislative agenda, even though the deputies were supposed to examine the cryptocurrency bill before the house recess.
