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Brazilian Securities Regulator Targets Mercado Bitcoin Over Token Sale CryptoBlog

Brazil’s securities regulator has ordered Latin America’s largest cryptocurrency exchange, Mercado Bitcoin, to provide information about the digital tokens it has issued.

Mercado Bitcoin, the region’s largest cryptocurrency exchange by volume, is to provide information to Brazil’s Securities and Exchange Commission (CVM) on the fixed income tokens it has sold in the past two years, Stadium newspaper first reported Tuesday.

The exchange must also reveal the amount raised with the tokens and the list of investors who bought them, the report adds.

StadiumThe report did not name the tokens, but confirmed that they were issued on a blockchain and supposedly backed by real-world assets. He added that they were “low risk, high return” in “consortium, energy, payment securities and receivables”.

Mercado Bitcoin says Decrypt in an email that his token sales were doing everything within Brazil’s regulatory framework.

He added that he is “actively” working with the CVM and Brazil’s central bank to “help build regulations for the sector.”

“We do not make public offerings of securities outside of the authorizations we hold as a crowdfunding platform and authorized investment manager,” the statement said.

2TM Group, the parent company of Mercado Bitcoin, has reduced its workforce following the sale of the crypto market.

Earlier this month 2TM To cut 15% of its workforce, just two months later announcing a previous round of job cuts.

2TM also criticized Brazilian regulators for not being clear with crypto regulations. The company said in a statement this month that the environment in Brazil was “unfair” and “lacks legal framework approval for crypto activities.”

Brazil has a booming Bitcoin market: It was the first country in the region to launch a Bitcoin ETF and now has the the biggest number exchange-traded crypto funds on the continent. And a report this month by the country’s tax authority show that Brazil surpassed one million registered crypto users in July for the first time.

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