The so-called Bitcoin Pharaoh was arrested in August last year for defrauding over 27,000 Brazilians in a pyramid scheme that promised guaranteed 10% monthly returns.
The Brazilian CVM has ordered Bybit exchange to cease offering securities illegally, four months after it commenced operations, just as it banished Binance.
A regulatory framework that was approved by lawmakers in April and currently on the desk of the Office of President gives the Brazilian securities regulator a small role in the digital currency industry.
The platform will deploy blockchain and smart contracts in asset custody, currency exchange, and alternative investment financial services and would work similar to liquidity pools on DeFi protocols.
Santander Brazil is also considering offering tokenization services to issue traditional market assets as blockchain-based tokens.
In addition to tokenization services, the tokenization platform will introduce digital assets custody services and token-as-a-service (TaaS) offerings.
If passed, the bill will give the executive oversight powers over digital assets firms and will introduce strict sentences for digital assets fraudsters.
Federal Deputy Paulo Martins has proposed to amend Article 835 of Brazil's Civil Procedure Code to allow digital currencies to be used for payments without giving them legal tender status.
The law specifies that any profit made from the transaction is taxable even when digital currency transactions do not involve Brazilian Real or other fiat currency.
The draft bill, which received a green light from a Senate committee in February, is now headed to the Chamber of Deputies and, if approved, to the country’s president.
Brazil is moving forward with its central bank digital currency plans, and in the latest move, it has picked nine firms to explore digital real possibilities, including the region’s largest digital currency exchange.