Mercado Bitcoin asked to clarify token information by regulators

Securities and exchange commission of Brazil requested information from Mercado Bitcoin regarding its fixed-income token offering
On its website, Mercado Bitcoin provides a number 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 fixed-income token offering.

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 (approximately $7.44 billion at today’s exchange rate) was 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 number of fixed-income tokens available. These, which advertise yields of up to double digits based on the asset, require a minimum investment of one hundred Brazilian reais (or approximately $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. Additionally, it wants to see a list of investors and their investment amounts in the assets.

The Block was informed by a spokesperson that the CVM does not comment on specific cases. However, the regulator confirmed that if it discovers transactions involving potential securities, it will request additional information if necessary.

According to the CVM, interactions with participants in order to request information for the due work of analysis of facts and appropriate measures are carried out whenever necessary and, in particular, when it identifies possible transactions with potential characteristics of securities.

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Brazil’s securities regulator arguably has been open to crypto.

In addition, 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 themselves with securities regulations.

Cointelegraph Brasil wrote last week that the guidelines would be coming, confirming the initial report that the CVM was working on them. However, the regulator stated that a date has not yet been established.

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 lower house. Before the country’s presidential elections on Oct. 2, it is likely that the bill will not advance at all.

It’s 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 cracked down on crypto companies.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing