ByBit, a Singapore-based crypto exchange, has been banned by the Brazilian Securities and Exchange Commission (CVM) from brokering securities. The CVM, in an official statement, ordered the suspension of the public offering of any securities intermediation services, directly or indirectly, including the use of websites, applications, or social networks by ByBit.
The regulator said the crypto exchange wanted to raise funds from investors residing in Brazil for investments in securities without the company has authorized to act as a securities intermediary. Only B3, Brazil’s stock exchange, can offer securities in the country.
CVM said ByBit must comply with the ban immediately or face a daily fine of $194.
The crypto exchange had launched earning products and an NFT marketplace for Brazilian consumers to buy cryptocurrencies using Brazilian fiat currency. In June, it informed InfoMoney that it was actively monitoring the Brazilian debate over crypto regulation to take up the best course of action and avoid a repeat of Binance. It should be noted that ByBit is the first crypto exchange to provide trading in USDC options. The platform is expanding its selection of cryptocurrency options. It wants to include contracts for Solana and Ether to meet customer demand.