The Brazilian Securities and Exchange Commission (CVM) has prohibited Singapore-based cryptocurrency exchange Bybit from brokering “securities” in the country.
In an announcement on Monday, the CVM issued a declaratory act ordering the suspension of Bybit’s security solutions and intermediation services to Brazilian individuals, whether directly or indirectly through the use of websites, applications, or social networks.
According to the CVM, the crypto exchange, which also offers spot and futures trading, attempted to raise funds as a securities intermediary without the necessary authorization.
According to CVM regulations, international issuers can only have their securities sold on local markets in Brazil. Binance, another cryptocurrency exchange, was forced last year to stop trading bitcoin derivatives on its Brazilian platform.
The declaratory act also required Bybit to immediately comply with the ban or risk a daily fee of 1,000 Brazilian reals (US$194).
Bybit stated in April that it would provide a full array of products and services to Brazilian users, including the ability to purchase crypto assets using Brazilian reals.