Brazil Securities and Exchange Commission Bars Bybit Offering Crypto Trading

Brazilian Securities and Exchange Commission, (CVM), ordered Monday the banning of cryptocurrency exchange Bybit from engaging with the securities brokerage business.

CVM issued a Monday statement ordering the suspension of ByBit “public offer of any securities intermediary service, directly or indirectly to Brazilian users, through the use of websites and applications or social network.”

CVM reports that ByBit seeks to raise funds from Brazilian investors for securities investments. The company is not authorized as a securities intermediary.

Bybit is one of Europe’s most stable cryptocurrency trading platforms. It claims that it has the necessary liquidity to provide liquidity for Brazil’s cryptocurrency market, with approximately 6 million active users per day (dau), and $10 billion in daily trading volume.

However, the Brazilian government has stated that only the Brazilian stock market B3 can facilitate securities trading and ByBit cannot be considered.

According to the Brazilian government, breaking the ban could lead to a fine of 1,000 Brazilian Reals (equivalent $194 per day).

The Brazilian Securities and Exchange Commission directed cryptocurrency trading platform Binance that it immediately cease derivatives trading services within Brazil, effective July 6. All derivatives are considered securities under Brazilian law.

Recent announcements by Brazilian esports teams MIBR and Bybit regarding a partnership and sponsorship deal for the next three year’s were made.

Image source: Shutterstock

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