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ByBit says that it is suspending derivatives trading in Brazil after receiving a ban from the country’s securities regulator.
Crypto exchange Bybit recently announced that it is discontinuing crypto futures and options trading in Brazil following a regulatory ban. Bybit’s decision to halt derivatives trading in Brazil comes after the country’s Securities and Exchange Commission (CVM) slapped a ban on the exchange last week, preventing it from brokering securities. In a published declaratory act, the CVM mandated Brazilian stock exchange B3 as the sole authority of all securities intermediation services in the South American country. In the same breath, the regulator suspended all ByBit “securities intermediation services, directly or indirectly” catering to Brazilians.
ByBit to Resolve Ban in Brazil
Following its announcement to discontinue derivatives trading in Brazil, ByBit also stated that it would resolve the issue. According to the Singapore-based digital currency exchange, it is already in talks with the CVM towards a resolution.
A message on ByBit’s platform currently issues a warning regarding the exchange’s decision. It also advises users to manage their positions and orders on or before Thursday. When asked whether it would automatically close users’ open derivatives positions on Wednesday, ByBit did not respond. However, the Singapore exchange stated that it will continue to offer other crypto products in Brazil on a normal scale. Furthermore, ByBit also states that these products, including spot market and asset trading, will be “in compliance with the appropriate local regulations.”
ByBit Crypto Options Initiative
Back in April, ByBit announced plans to add crypto options to its suite of services. At the time, the company’s CEO Ben Zhou expressed optimism at crypto options going mainstream with this initiative. According to Zhou, “options is something that our existing clients have long been asking for since there has been no other revolutionary product offered in the market at the moment. We are confident that our state-of-the-art offering will set the bar for the sector and normalize crypto options trading, just like what Robinhood did for stock options.”
Zhou also concluded by saying:
“We are also excited to bring with us to options trading the world-class liquidity and reliability our clients have come to associate with Bybit.”
ByBit UAE Venturing Continues amid Brazil Ban
Earlier in the year, reports stated that ByBit would open its headquarters in Dubai and conduct business operations in the UAE. This came about as part of the Arab region’s plans to transform its economy into a global crypto hub. According to reports back then, ByBit would offer custom products in the UAE. Reports also stated that it would deploy services that cater to the region’s virtual assets market model. Furthermore, the crypto exchange said it was looking forward to UAE operations and sharing with collaborators.
Established in March 2018, ByBit offers a professional platform where crypto traders can access several products and services. These include crypto futures and options trading, as well as spot market and asset trading. In addition, the Singapore-based crypto exchange also offers customer services and multilingual community support.