Mercado Bitcoin asked to clarify token information by regulators
- The Securities and Exchange Commission of Brazil requested information from Mercado Bitcoin regarding the Interest Token offering
- On its website, Mercado Bitcoin offers a variety of fixed income ERC-20 tokens
- The notice comes as separate plans are being made by Brazil’s securities regulator to issue guidelines for crypto companies
According to Estado, a local news outlet, Mercado Bitcoin has confirmed that it has received a request from Brazil’s Securities and Exchange Commission regarding its offering of interest-bearing tokens.
Although the communication was confirmed by a spokesperson for the Brazilian cryptocurrency exchange, the company did not specify how it intends to proceed.
Over 40 billion reais (about $7.44 billion at today’s exchange rate) were transacted in 2021 on Mercado Bitcoin, which sells more than 200 different digital assets to its 3.8 million customers.
Mercado Bitcoin offers more than 200 types of digital assets
The ERC-20 token standard makes a variety of fixed income tokens available. These, which advertise returns of up to double digits based on the asset, require a minimum investment of one hundred Brazilian reais (or about $18.60).
According to Estado, the authority wants to know how much money Mercado Bitcoin has raised through token sales since January 2020 and whether or not it will continue to do so. In addition, it wants to see a list of investors and their investment amounts in the assets.
The Block was informed by a spokesperson that CVM does not comment on specific cases. However, the regulator confirmed that if it detects transactions involving potential securities, it will request additional information if necessary.
According to the CVM, interactions with participants are carried out to request information for the necessary work to analyze the facts and appropriate measures when necessary, and especially when it identifies possible transactions with potential characteristics of securities.
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Brazil’s securities regulator has arguably been open to crypto.
Additionally, despite the absence of digital asset regulations in the nation, the CVM is working on a set of guidelines that will help crypto businesses better align with securities regulations.
Cointelegraph Brasil wrote last week that the guidelines would be coming, confirming the first report that the CVM was working on them. However, the supervisory authority stated that a date has not yet been set.
Since the proposal was approved by the Senate in April, a crypto regulation bill in Brazil’s Congress has made significant progress this year. However, the bill has been stalled in the House of Commons. Before the country’s presidential election on October 2, it is likely that the bill will not go ahead at all.
It is possible that the securities regulator in Brazil has been open to crypto. It has opened a regulatory sandbox for fintech companies and allowed crypto exchange-traded funds. But at the same time, it has sometimes hit crypto companies hard.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
