Brazil’s Securities Regulator Targets Mercado Bitcoin Over Token Sale

Brazil’s securities regulator has ordered Latin America’s greatest cryptocurrency trade Mercado Bitcoin to offer data on digital tokens it issued. 

Mercado Bitcoin, the largest cryptocurrency trade within the area by quantity, wants to present data to Brazil’s Securities and Exchange Commission (CVM) on fixed-income tokens it has offered over the previous two years, Estadão newspaper first reported Tuesday. 

The trade additionally must reveal the quantity raised with the tokens and the checklist of traders who purchased them, the report added. 

Estadão’s report didn’t identify the tokens however confirmed they had been issued on a blockchain and supposedly backed by real-world property. It added that they had been “low danger and excessive yield”  in “consortium, vitality, writs of funds and receivables.”

Mercado Bitcoin informed Decrypt in an e-mail that its token gross sales did all the things inside Brazil’s regulatory framework. 

It added that it “actively” works with the CVM and Brazil’s central financial institution to “contribute to the development of laws for the sector.” 

“We don’t make public choices of securities exterior the scope of the authorizations we maintain as a certified crowdfunding platform and funding supervisor,” the assertion stated. 

2TM Group, Mercado Bitcoin’s father or mother firm, has slashed workers following the crypto maket’s sell-off. 

Earlier this month 2TM lower 15% of its workers—simply two months after saying an earlier spherical of job cuts.

2TM has additionally slammed Brazilian regulators for not being clear lower with regulating crypto. The firm stated in a press release this month that the setting in Brazil was “unfair” and “missing the approval of the authorized framework for crypto-activities.” 

Brazil has a booming Bitcoin market: It was the primary nation within the area to launch a Bitcoin ETF and now has the largest quantity of crypto exchange-traded funds on the continent. And a report this month by the nation’s tax authority showed that Brazil topped a million registered crypto customers in July for the primary time.