Bitcoin Exchange Statement from the Brazilian Securities and Exchange Commission!

Brazilian cryptocurrency Exchange Mercado Bitcoin confirmed yesterday that it has received a request regarding its fixed income token offering from Brazil’s Securities and Exchange Commission, according to local news outlet Estadão.

Brazilian Regulators Put Mercado Bitcoin Under Review For Information About Some Of Its Products

While a spokesperson for the crypto exchange confirmed this communication, it did not say how they would act.

In its press release, the company stated that it supports the regulation of digital asset service providers and stated the following on the subject:

“We do not conduct an IPO of securities beyond the scope of our mandate as an authorized crowdfunding and investment manager platform.”

Offering more than 200 types of digital assets to its more than 3.8 million customers, Mercado Bitcoin recorded a total of over 40 billion Brazilian reals (about $7.44 billion at today’s exchange rates) in 2021. These transactions include fixed income tokens.

According to Estadão, the regulator wants to know how much money Mercado Bitcoin has raised in these token offerings since January 2020 and whether it will continue to offer them.

It also requests to see a list of investors who have purchased the assets and how much they have invested.

Mercado Bitcoin continued his statements as follows:

“With regard to non-secure tokens (tokens that do not represent securities), we take care not to violate the scope of action of authorized bodies, including prior consultation with the regulator on the structure used for such tokens at the start of our activities in 2020.”

A representative from CMV said they did not comment on specific cases. However, the regulator confirmed that it would seek further information if needed if it identified transactions involving potential securities.

*Not investment advice.