According to Estadao, Brazil’s securities exchange commission (CVM), requested information from Mercado Bitcoin regarding its fixed-income token offer. Mercado Bitcoin has several fixed-income ERC-20 coins on its website. This notice comes as Brazil’s securities regulator plans to separately issue guidelines for cryptocurrency companies.
Mercado Bitcoin confirmed that it had received a request form Brazil’s securities exchange commission. The request, local news outlet Estadao stated yesterday, was in relation to its fixed-income token offer.
A spokesperson for the Brazilian crypto exchange confirmed that communication but did not elaborate on how it would proceed.
The company stated that it does not offer securities for public sale outside of the authorizations it holds as an authorized crowdfunding platform and investment manager platform. It also said that it supports regulation of digital assets service providers.
Mercado Bitcoin offers over 200 digital assets to its customers.
It recorded total transactions of more 40 billion reais (or $7.44 billion today at the exchange rate). There is a version of fixed income tokens that are available via the ERC-20 standard. They require a minimum of 100 Brazilian reais ($18.60), and can advertise up to double-digit yields, depending on the asset.
Estadao stated that the regulator would like to know how much Mercado bitcoin has raised through these token offerings, and if it will continue providing them. It would also like to see a list containing the names of those who invested in the assets.
In relation to non-security tokens (“tokens which do not represent securities),” Mercado Bitcoin stated.
A spokesperson for the CVM stated that they do not comment on individual cases. The regulator confirmed that it requests more information when it finds transactions involving potential securities.
According to the CVM, “whenever necessary” and in particular when it identifies potential transactions that could be classified as securities, the CVM conducts interactions with participants to request information and help in the analysis of facts and the appropriate actions.
CVM is also developing guidelines for crypto companies in order to help them better understand securities rules. These regulations are still required despite there not being any digital asset regulations in the country.
The regulator informed The Block that the CVM was preparing an advisory opinion which will contain general directives. The regulator stressed that the directive to be issued should be viewed as a source for guidelines and not crypto-specific regulations.
The CVM stated in the statement that “it is not, at the least for the moment, a regulation,” as there is no current legal provision. “The document will be interpreted as providing guidance and recommendations to the market.”
Cointelegraph Brazil was the first to report that CVM was working on the guidelines. It wrote last week that they would be arriving. However, the regulator said that it has yet to set a date.
The Brazilian Congress passed a crypto regulation bill this year. However, it is still stuck in the lower house after the Senate approved it in April. It is unlikely that the bill will make it through before the country’s Oct. 2 presidential elections.
Brazil’s securities regulator has been open to crypto. It has allowed crypto exchange-traded money and launched a regulatory sandbox to fintech companies. It has also cracked down on certain crypto companies in some instances.
The CVM stopped Bybit, a securities brokerage, from operating earlier this month. In 2020 , it also informed Binance that it couldn’t offer derivatives products to the country.
