Bybit to liquidate noncompliant Brazilian business accounts

Bybit notified certain Brazilian business account holders beginning Aug. 1 by in-app message and email that they must complete additional Business Verification by Aug. 21. The notice applies only to business accounts that received an individual notification.

Accounts that do not finish the requested checks by Aug. 21 will be placed under access restrictions. Restricted accounts will not be able to open or add positions or access most Bybit products and services. The notice allows two exceptions during the restriction period: cryptocurrency withdrawals and the Convert feature, both subject to limits.

If accounts remain noncompliant on Sept. 21, Bybit will begin forced enforcement. Open positions on products labeled as restricted for those accounts will be liquidated at prevailing market prices. Any fiat balances the company classifies as unsupported that users have not converted will be automatically converted to USDT. Coupons and promotional bonuses that conflict with local rules will be forfeited. The notice does not list which products are classed as restricted or which fiat currencies are considered unsupported.

On Sept. 24, eligible compliant Brazilian individual and business users will be migrated from their existing main accounts into Standard Accounts on a Brazil-based legal entity. Migrated accounts will be limited to products permitted under Brazilian rules, and fiat services will support only the Brazilian real (BRL). Brazilian nationals living abroad are excluded from the migration if they provide valid proof of a foreign address.

The notice references alignment with Brazil’s central bank framework established by Resolutions 519, 520 and 521, effective Feb. 2, which set rules for authorization, supervision, customer protection, governance, security, disclosure and anti-money-laundering controls for virtual-asset service providers. The notice does not state whether the Brazil-based entity has obtained any specific authorizations from Brazilian authorities.

Bybit’s public notice did not specify how many business accounts received verification requests, nor did it give a precise cutoff hour for the Aug. 21 deadline or a revision history of the notice. Affected users are instructed to follow the individual instructions included in their in-app or email notifications and complete the requested verification by the stated deadline to avoid restrictions, forced liquidation or automatic conversion of balances.