The Brazilian Regulatory Body Prohibits Bybit Exchange

-The Brazilian SEC ordered a ban on Bybit exchange.

-CVM says Bybit attempted to raise funds from Brazilian investors for securities investments.

The Brazilian Securities and Exchange Commission (CVM), recently announced the ban of prominent cryptocurrency exchange, Bybit. According to the official announcement from the CVM, the regulatory body ordered the suspension of Bybit, from engaging in the securities brokerage business.

CVM stated:

Public offering of any securities intermediary services, directly or indirectly, to Brazilian users, including through the use of websites, applications or social networks.

According to the CVM, Bybit was attempting to raise funds from Brazilian investors for securities investments despite the company’s lack of authority to function as a securities intermediary. However, the Brazilian authorities asserted that the exchange is not eligible and only the Brazilian stock market B3 is permitted to offer securities trading.

CVM’s Action Over Exchanges

The CVM also stated that Bybit should follow the ban immediately, or a daily fee of 1,000 Brazilian reals might be imposed for violating the restriction. The exchange platform has not yet reacted to the statement made by the Brazilian SEC. Moreover, the Brazilian SEC recently ordered Binance to suspend derivatives trading services in Brazil immediately.

The Singapore-based Bybit exchange is considered as one of the leading cryptocurrency trading platforms. The firm has already created a strong presence in the crypto scenario. Now the firm is expanding more strategies to expand its functionalities across the globe, especially in Europe and Asia.

Recently, Bybit has partnered with crypto payment company Circle Internet Financial to make it easier for the exchange to serve as a gateway for institutional and retail USDC-settled products.