Mercado Bitcoin Targeted By Securities Regulator Of Brazil For Token Sale

The securities regulatory authority in Brazil has recently issued an order against Mercado Bitcoin to provide digital tokens’ information.

Mercado Bitcoin is the biggest cryptocurrency exchange currently operating in Latin America. The exchange is required to provide information surrounding the digital tokens that the exchange has issued.

CVM is After Mercado Bitcoin

The largest crypto exchange in Latin America in terms of trading volume is now required to provide information surrounding fixed-income tokens.

The exchange has been issuing fixed-income tokens for the users and as per the latest reports, it is to provide information for the past two years for the tokens.

The reports came out recently revealing the Securities and Exchange Commission (CVM) of Brazil has issued an order against the exchange to provide such information.

Even the local news reporting firms are covering the matter as it involves the largest cryptocurrency exchange. According to figures, more than 2 million users have registered with the exchange and are currently using its trading services.

Information Required by the CVM

In the order issued against the exchange, the CVM has demanded to be provided with the investors’ list and the amount raised from the tokens.

To be exact, the exchange is required to provide the whole list of investors who purchased the fixed-income tokens from the exchange.

Additionally, the exchange has to provide the CVM with the amount that it raised from the sales of these tokens to the investors.

Information about the Tokens

According to the news reporting firms, not many details have been shared surrounding the tokens. It is yet to be confirmed which token the regulatory authority has demanded the information for.

However, it is confirmed that the concerned tokens were issued by the exchange’s blockchain. It is the real-world assets that are backing the issued tokens.

In addition to the above, the firm has shared that the particular tokens are quite popular for offering high yields and are of low risk.

Statement by Mercado Bitcoin

According to the exchange, they have always worked closely with the regulator and will continue working with them. The CVM will have full cooperation and support from their end in dealing with the matter.

However, the officials at the exchange have revealed that they had completely regulatory approval from the CVM throughout the development and distribution process of the tokens.

They even built the token and issued fully complying with the regulatory framework laid out by the CVM.

This may be a negative sign for the exchange as it had recently started working on the construction of a regulatory framework surrounding cryptocurrencies with the central bank.

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