Brazil’s Securities Market Regulator Targets Mercado Bitcoin over Token Sale

Brazilian Securities and Exchange Commission, (CVM), is a Brazilian securities market regulator. It has asked Mercado Bitcoin to disclose information about fixed-income tokens it has issued in the past two years.

According to reports by Estadão newspaper, the capital markets regulator wants to know the amount Mercado Bitcoin raised with the tokens and see a list of investors who participated.

Although the report didn’t reveal the names, it confirmed that the tokens were issued on a blockchain. They are also backed by real assets. The report further said the tokens were “low risk and high yield” in “consortium, energy, writs of payments and receivables.”

Mercado Bitcoin has responded to the matter, saying that its token sales fully complied with Brazil’s regulatory framework. The exchange further said it “actively” works with the securities market regulator and Brazil’s central bank to “contribute to the construction of regulations for the sector.”

“We do not make public offerings of securities outside the scope of the authorizations we hold as an authorized crowdfunding platform and investment manager,” Mercado said.

The CVM barred Bybit, a Singapore-based crypto exchange, from brokering securities in Brazil at the beginning of September. Bybit was kicked off the Brazilian market on September 5th for its unregistered securities offerings. The country’s securities watchdog ordered the Singaporean exchange to cease operations immediately or face a daily fine.

CVM stated that Bybit wanted to raise funds for Brazilian investors in order to invest in securities. However, the company was not authorized to act as a securities broker. The regulator argued that only Brazil’s stock exchange B3 is allowed to offer securities in the country.

This month, 2TM Group, Mercado Bitcoin’s parent company, criticized Brazilian regulators for not being clear about regulating cryptocurrency. According to the company’s statement, Brazil’s current regulatory system is not fair and does not have a clear framework for crypto-activities.

According to reports, the CVM is working on a crypto guide. However, companies are encouraged to consult the commission before issuing any tokens which could be considered securities.

Source: Shutterstock



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