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Brazilian Securities and Exchange Commission CVM Mercado Bitcoin Fixed Income Token Investments

Brazilian CVM

The Brazilian Securities and Exchange Commission (CVM) has sent a subpoena to Mercado Bitcoin, one of the biggest exchanges in the country, to inquire about the services the company lends regarding cryptocurrency-related fixed return investments. The company must disclose details about these investments, and whether they intend to make them available to the public.

Mercado Bitcoin Subpoenaed on Fixed Income Token Investments

Cryptocurrency Exchanges are more than just a place to trade cryptocurrency. In regions like Latam where there is high inflation, some exchanges offer products that are similar to banks to encourage customers to get into the crypto market. Mercado Bitcoin, one of the biggest cryptocurrency exchanges in Brazil, has been subpoenaed by the Brazilian Securities and Exchange Commission (CVM) on the services that it offers customers via its platform.

The subpoena asks about the services provided by the Tokens section of the website of Mercado bitcoin. This section, according to CVM, allows customers to diversify their portfolios with low risk and get high yields in different areas.

These tokens are for customers who have more than a specific number of stablecoins. They provide a higher yield than standard savings products in the short-term and ostensibly offer a higher return than traditional savings products.

CVM Subpoena Details

The CVM requires certain information regarding how these tokens function. Mercado Bitcoin will have to detail the number and identities of the customers that have invested in these products since January 2020. Mercado Bitcoin must also announce if it plans to continue offering these token products. The company could face sanctions if it doesn’t, if the CVM finds that the products are not legal.

Mercado Bitcoin insists that it does not offer irregular services. The company stated:

We do not offer securities for public sale outside of the authorizations that we have as an authorized crowdfunding platform and investment manager platform.

In the same way, the company clarified that they take the utmost care to not infringe the field of action of authorized entities, and that the company had consulted about the structure of these tokens before offering the products in 2020.

This is just the latest problem that the exchange has faced this year, with the company executing two different layoff rounds, the first in June and the last one executed earlier this month. In 2021 Mercado Bitcoin raised $200 million in its Series B funding round, backed by Softbank, achieving a valuation of more than $2 billion.

What do you think about Mercado Bitcoin’s CVM subpoena? Please leave your comments below.

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. He is a computer engineer by trade, has lived in Venezuela and has been impacted by the cryptocurrency boom on a social level. This gives him a unique perspective about crypto success and how it can help the underbanked and unbanked.

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Disclaimer: This article is for informational purposes only. This article is not intended to be a solicitation or offer to buy or sell any products or services. does not provide investment, tax, legal, or accounting advice. The author and the company are not responsible for any loss or damage resulting from or in connection to the content, goods, or services discussed in this article.

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