In a declaratory act published on Monday, the CVM ordered the suspension of “the public offering of any securities intermediation services, directly or indirectly, including through the use of websites, applications or social networks” by ByBit to Brazilians.
According to the CVM, ByBit was “seeking to raise funds from investors residing in Brazil for investments in securities,” without the company having authorization to act as a securities intermediary. In Brazil, only Brazil’s stock exchange B3 can offer securities.
The CVM added that ByBit must comply with the ban immediately or else the commission will impose a daily fine of 1,000 Brazilian reals (equivalent to $194).
In April, Bybit announced that it allowed Brazilian users to acquire cryptocurrencies using Brazilian reals and the launch of earning products and a non-fungible token (NFT) marketplace.
In June, ByBit told that it was closely following the crypto regulatory debate in Brazil, in order to take the best possible approach and not repeat the case of Binance, which was suspended by the CVM in 2020.