Brazil’s securities regulator urges Mercado Bitcoin to provide details of issued tokens
Brazil’s Securities and Exchange Commission (CVM) has ordered local exchange Mercado Bitcoin to disclose details of some tokens issued over the past two years. The newspaper Estadao reported the matter on Tuesday, noting that the tokens in question are fixed income tokens.
The report did not reveal the names of the tokens, but details show they were backed by real-world assets and issued on distributed ledger technology (DLT). Furthermore, they were described as high returns and low risk and had a connection to the energy sector.
There are concerns in some quarters that the securities watchdog is putting the final parts of a case against Mercado Bitcoin for breach of security regulations. However, executives of the stock exchange have rejected the claims and said they are fully compliant with existing laws.
“We do not make public offerings of securities outside the scope of the authorizations we have as an authorized crowdfunding platform and investment managers,” the exchange said in a statement.
Mercado Bitcoin’s statement revealed its eagerness to work with the CVM and the nation’s central bank to add its quota to the “construction of regulations” for the industry. In order to comply with the directive of the CVM, Mercado Bitcoin will forward information about the amount collected by selling tokens and a comprehensive list of investors who bought them.
Mercado Bitcoin is the largest exchange in terms of transaction volume in Brazil and has a significant portion of Latin America’s market share. The firm had previously unveiled plans to wade into the Mexican markets later this year, and it will be interesting to see how they wind their way around North American regulations.
Mercado Bitcoin’s Fiery Year
Mercado Bitcoin’s parent company, 2TM, went through a rough season that affected the holding company’s finances. To stay afloat through adverse macroeconomic conditions, 2TM was forced to lay off 15% of its employees, making it the second time in 2022 that it has cut its workforce.
The company hit out at Brazilian regulators for not speeding up a bill on digital assets that it believes would have created an enabling environment for industry players.
“The economic downturn continues and the competitive environment continues to deteriorate and [is] unfair, without the approval of the legal framework for crypto-assets, with players following the laws penalizing companies that ignore local rules,” it said in a statement
The events of 2022 have eroded the previous year’s highs that saw Mercado Bitcoin raise $200 million from SoftBank and achieve unicorn status.
See: BSV Global Blockchain Convention panel, Tokenizing Assets & Securities on Blockchain
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