The Brazilian Securities and Exchange Commission (CVM) has sent a subpoena to Mercado Bitcoin, one of the country’s largest exchanges, to inquire about the services the company provides regarding crypto-related fixed-return investments. -change. The company will need to disclose details of these investments and whether it plans to keep them available to the general public.
Mercado Bitcoin cited to appear on fixed income token investments
Cryptocurrency exchanges are becoming more than that, and in regions like Latam, where there are countries with high inflation rates, some are offering banking-like products to entice customers to enter the cryptocurrency market. cryptography. Mercado Bitcoin, one of the largest cryptocurrency exchanges in Brazil, has been sued by the Brazilian Securities and Exchange Commission (CVM) over the services it provides to clients through its platform.
The subpoena inquires about the services offered through the Tokens section on the Mercado Bitcoin webpage, which the CVM claims offers customers a way to diversify their portfolio with supposedly low risk and receive high returns in different areas. .
These tokens are available to customers with more than a certain number of stablecoins, ostensibly offering a higher return than normal short-term savings products.
CVM Assignment Details
The CVM requires some key information about how these tokens work. Mercado Bitcoin will have to detail the number and identity of customers who have invested in these products since January 2020. In addition, Mercado Bitcoin will have to announce whether it intends to continue offering these tokenized products in the future. If so, the company could face sanctions if the CVM decides that the products are irregular.
However, Mercado Bitcoin claims that it does not offer irregular services. In a statement, the company explained:
We do not make a public offer of securities outside the framework of the authorizations we have as an approved crowdfunding platform and investment manager.
Similarly, the company clarified that it takes great care not to infringe the scope of authorized entities, and that the company has consulted on the structure of these tokens before offering the products in 2020.
This is just the latest issue the stock market has faced this year, with the company executing two different rounds of layoffs, the first in June and the last executed earlier this month. In 2021, Mercado Bitcoin raised $200 million in its Softbank-backed Series B funding round, reaching a valuation of over $2 billion.
What do you think of Mercado Bitcoin’s CVM subpoena? Tell us in the comments section below.
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