The Brazilian Securities and Exchange Commission (CVM), the stock market regulator in Brazil, ordered Mercado Bitcoin, the largest cryptocurrency exchange in Brazil, to provide information on the fixed income tokens that the exchange has issued in the last two years.

According to reports from the newspaper Estadão, the capital markets regulator wants to know the amount raised by Mercado Bitcoin with the tokens and to see a list of the investors who participated.

While the report did not reveal the names of the tokens, it did confirm that they were issued on a blockchain and allegedly backed by real-world assets. The report further said that the tokens were “low-risk, high-return” in “pool, energy, money orders, and accounts receivable.”

Mercado Bitcoin responded to the matter, saying that its token sales were fully compliant with the Brazilian regulatory framework. The exchange also said it is “actively” working with the stock market regulator and Brazil’s central bank to “contribute to the construction of regulations for the sector.”

“We do not make public offerings of securities outside the scope of the authorizations that we have as an authorized crowdfunding platform and investment manager,” Mercado said.

Earlier this month, the CVM banned Singapore-based Bybit from trading securities in the country. On September 5, Bybit was banned from the Brazilian market for its alleged unregistered securities offering. The country’s securities watchdog ordered the Singapore stock exchange to cease trading immediately or face a daily fine.

The CVM alleged that Bybit sought to raise funds from Brazilian investors for investments in securities without the company having the authorization to act as a securities intermediary. The regulator argued that only Brazil’s B3 stock exchange can offer securities in the country.

This month, 2TM Group, the parent company of Mercado Bitcoin, criticized Brazilian regulators for not being clear about regulating cryptocurrencies. The company said that the current environment in Brazil is unfair and has not yet developed a clear regulatory framework for crypto activities.

Meanwhile, reports indicate that the CVM is preparing to release official crypto guidance soon, but encourages companies to consult the commission before issuing any token that could be considered a security.

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