The Singapore-based cryptocurrency exchange Bybit has been banned by the Securities and Exchange Commission of Brazil (CVM) from offering “securities” in the country.
A declaratory act was released by the CVM on Monday that suspended Bybit’s security offerings and intermediation services through the use of websites, applications or social networks to the citizens of Brazil.
The crypto exchange has allegedly been accused by the CVM of trying to raise funds as a securities intermediary without holding the correct authorization needed to do so.
If Bybit does not comply and cease operations immediately, the exchange will face a fine of 1,000 Brazilian reals ($194) per day, according to the declaratory act.
In line with CVM regulation, foreign issuers in Brazil are only permitted to have their securities traded on local exchanges.
Last year, the Brazilian securities market banned fellow cryptocurrency exchange Binance from trading crypto derivates on its Brazilian platform.