Bybit has become the latest digital asset exchange kicked out of the Brazilian market over its alleged offering of unregistered securities. The country’s securities watchdog has ordered the Singapore stock exchange to cease trading immediately or face a daily fine.
Brazilian Securities and Exchange Commission (CVM) published a declaratory deed this week stating that Bybit does not have authority to act as a securities intermediary.
The CVM called for “the immediate suspension of the dissemination of any public offer of securities intermediation services, directly or indirectly, including through the use of web pages, applications or social networks”.
Failure to suspend services immediately will result in a daily fine of R$1,000 ($190).
The suspension comes just four months after Bybit made its foray into Brazil, a country whose 212 million people can be a lucrative market for any digital asset company. per bit describe the movement as a starting point for its expansion in Latin America. It initially allowed users to purchase digital assets using Brazilian reals, leveraging the PIX real-time payment system. It also offered a non-fungible token (NFT) market.
“Brazilians highly value their experience with the services they use. When it comes to investments, we know we will only be successful by delivering the world-class liquidity and reliability that users have come to expect from Bybit,” the exchange said at the time.
Notably, upon entering Brazil, Bybit claimed that it was keen not to make the mistakes Binance made that caused Binance to be expelled from the country. As CoinGeek reported, CVM blocked Binance from offering its services in 2020 and also threatened it with a daily fine.
Coinbase (NASDAQ: PIECE OF MONEY) also gave the Brazilian market a boost, attempting to buy the country’s largest exchange, Mercado Bitcoin, which is valued at over $2 billion. However, the acquisition talks fell through recently.
Bybit is no stranger to regulatory issues. Earlier this year, South African regulators identified the exchange as one of the VASPs serving the market illegally, alongside Sam Bankman-Fried’s FTX. The Ontario Securities Commission (OSC) banned Bybit from operating in Canada last year, Spain’s securities watchdog banned its operations in the country, Japan alleged it was operating illegally and the UK’s FCA ordered it to cease operations in March.
Follow CoinGeek’s Crypto Crime Cartel series, which dives into the stream of groups from BitMEX to Binance, Bitcoin.com, Blockstream, ShapeShift, Coinbase, Ripple,
Ethereum, FTX, and Tether, which co-opted the digital asset revolution and turned the industry into a minefield for naïve (and even experienced) market players.
New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.