Brazil’s Securities and Exchange Commission (CVM) Securities and Exchange Commission (CVM) demands details from Mercado Bitcoin. This is for the CVM to gain clarity on the exchange’s fixed income token offering. The specifics of the request were reported in the newspaper Estado de S.Paulo. Fixed income token offers are blockchain-issued tokens backed by conventional financial assets.
BRAZIL’S SECURITIES REGULATOR PROBES CRYPTO EXCHANGE MERCADO BITCOIN ON TOKEN ISSUANCE – COINDESK
— First Squawk (@FirstSquawk) September 28, 2022
Mercado Bitcoin should offer data to Brazil’s CVM
The Mercado Bitcoin exchange should explain and detail the funds raised via the token sale since January 2020. The CVM also asked for information on the investors who participated in the offering during that same period. CVM also requested clarification about whether the exchange intends to continue providing the fixed income cryptocurrency on the platform.
CVM also intends to publish a regulation requiring enterprises to contact the agency before issuing any tokens. Since 2019, the SEC has maintained that activities involving securities. Virtual assets may be subject to the Commission’s inspection and monitoring, even if registration is not required.
Crypto fans in Brazil are currently on the rise. According to KuCoin data published in April, nearly 34 million Brazilians are active crypto investors. These individuals have been trading actively during the last six months. The report stresses the 34 million young people who comprise its strong foundation; the vast majority of them are underbanked or unbanked. They were lured to crypto by various significant challenges, including poor wages and unemployment.