Singapore-based cryptocurrency exchange – Bybit – said it is taking the necessary steps to ensure that it understands and complies with the requirements of the Securities and Exchange Commission of Brazil (CVM) in relation to its services.The Brazilian financial watchdogs had banned Bybit from brokering securities.

The CVM released a declaratory act at the beginning of this week that ordered the immediate suspension of the cryptocurrency platform’s security offerings and intermediation services directly or indirectly via websites, applications, or social network in Brazil. The document stated that Bybit was looking to raise funds as a securities intermediary without the authorization to do so.

Following the development, a Bybit spokesperson said; “Bybit is taking steps to ensure we fully understand the regulator’s requirements and demands regarding our derivatives trading offerings. We will respond accordingly with a view to resolving the matter amicably in the best interest of all parties. At the moment we are unable to comment on an evolving situation.”

The CVM’s order comes almost five months after the exchange revealed its plans to roll out a full cache of products and services to Brazilian users, which would enable them to use Brazilian reals to purchase digital assets. At present, Brazil’s stock exchange, B3, is the only entity in the country that is authorized to offer securities.

It is worthy of note that under CVM rules, foreign entities can have their securities traded only on domestic exchanges. Last year, Binance was ordered to halt trading in cryptocurrency derivatives on its Brazil platform to comply with an order by the South American country’s securities regulators.

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