Singapore-based cryptocurrency exchange Bybit said it is taking necessary steps to ensure that it understands the requirements of the Securities and Exchange Commission of Brazil (CVM) with respect to its services.
The Brazilian watchdogs had banned Bybit from brokering securities.
The CVM released a declaratory act earlier this week that ordered the suspension of the crypto platform’s security offerings and intermediation services directly or indirectly via websites, applications, or social networks to Brazilian citizens.
The document stated that Bybit was seeking to raise funds as a securities intermediary without the appropriate authorization to do so.
Following the development, a Bybit spokesperson told CryptoPotato,
“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 order comes almost five months after the exchange divulged plans to roll out a full suite of products and services to Brazilian users, which would enable them to use Brazilian reals to purchase digital assets.
At present, Brazil’s stock exchange, B3, is the only entity in the country that can offer securities.
It is worth noting that under CVM regulation, foreign entities can have their securities traded only on domestic exchanges.
Last year, Binance was ordered to halt trading in crypto derivatives on its Brazil platform to comply with an order by the South American country’s securities authorities.
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