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Brazil’s Securities Regulator Probes Crypto Exchange Mercado Bitcoin on Token Issuance

The CVM asked the country’s largest local crypto exchange to provide data on fixed income tokens it has issued since January 2020.Read MoreCoinDesk

This article is adapted from CoinDesk Brasil, a partnership between CoinDesk and InfoMoney, one of Brazil’s leading financial news publications. Follow CoinDesk Brasil on Twitter.

The Brazilian Securities and Exchange Commission (CVM) requested that Mercado Bitcoin provide it with information on fixed-income tokens the exchange has issued over the past two years.

The CVM wants to know the amount Mercado Bitcoin raised with the tokens and see a list of investors who participated.

Mercado Bitcoin said in a statement that it didn’t release “public offerings of securities outside the scope of the authorizations we hold as an authorized crowdfunding platform and investment manager.”

In September, the CVM banned the Singapore-based cryptocurrency exchange Bybit from brokering securities, as it argued that only Brazil’s stock exchange B3 was allowed to offer such instruments.

CVM plans to release an official crypto guide recommending companies to consult the commission before issuing any token that may be considered a security, CoinDesk learned on Tuesday.

This article was translated by Andr?s Engler, and edited by CoinDesk. The original Portuguese can be found here.

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