Brazil's Securities Exchange Commission Forbids Bybit from Offering Cryptocurrency Trading

In a statement released on Monday, the CVM ordered the suspension of ByBit's “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 CVM, ByBit is seeking to raise funds for securities investments from investors residing in Brazil, and the company is not authorized to act as a securities intermediary.

One of the most reliable cryptocurrency trading venues in Europe and Asia is now Bybit. According to the exchange, it has created the required liquidity for the Brazilian crypto market including an estimated 6 million daily active users (dau) and $10 billion in transaction volume. However, the Brazilian authorities claimed that ByBit is unqualified and that solely the Brazilian stock exchange B3 is authorized to provide trading of securities. According to the Brazilian government, breaching the restriction could lead to a penalty of 1,000 Brazilian reals ($189) daily

The cryptocurrency trading platform Binance was ordered to immediately stop providing derivatives trading services in Brazil on July 6 by the Brazilian Securities and Exchange Commission. All derivatives are considered securities under Brazilian law.

Recently, the Brazilian esports club MIBR signed a three-year cooperation and sponsorship agreement with the cryptocurrency exchange Bybit.

As a reminder, WikiBit is ready to help you search the qualifications and reputation of projects in a bid to protect you from hidden dangers in this risky industry!

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