Brazil’s Securities and Exchange Commission (CVM) recently suspended the operations of mining investment scheme, Hashbrasil. The CVM has accused the company of violating securities laws by conducting an unregistered public offering.

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Hashbrasil Suspends Operations After Warning From Brazilian Securities and Exchange Commission

The Brazilian Securities and Exchange Commission has suspended solicitations from mining investment scheme, Hashbrasil – accusing the company of violating securities regulations.

Last week, the CVM released a statement asserting that Hashbrasil and the company’s operator, Mr. Leonardo Janiszevski, were “publicly offering […] an investment opportunity related to quotas in [a] Bitcoin mining investment group, using [an] appeal to the public for the conclusion of contracts that may be included in the legal concept of [a] security.”

As such, the Brazilian Securities and Exchange Commission has mandated the “immediate suspension of any offer of securities or collective investment contracts related to” Hashbrasil, stating that the company conducted “a public offering without registration,” and that Mr. Janiszevski is “not authorized to engage in any activities on the securities market.”

Brazilian Securities Watchdog Targeting Cryptocurrency Sector

On March 1st, the day after the publication of the CVM’s determinations, Hashbrasil posted on Facebook stating that the company had temporarily suspended operations in response to the regulator’s comments. According to a rough translation, the company’s website currently states “Due to CVM Resolution 790 […] Hashbrasil suspends the offer of new VPS hirings for data processing temporarily,” however it adds that “The VPSs of our current customers are in full operation, and our support as well.”

The Brazilian Securities and Exchange Commission has recently demonstrated an increasing willingness take regulatory action targeting the cryptocurrency industry. In January, the securities regulator announced that local investment funds are prohibited from purchasing cryptocurrencies – owing to a CVM determination that cryptocurrencies are not legally considered to comprise financial assets.

The CVM threatened that should Hashbrasil continue to operate in defiance of the regulator’s determinations, Mr. Janiszevski will incur a daily fine of $5,000 BRL (approximately $1550 USD).

What do you think of the Brazilian Securities and Exchange Commission’s recent determinations with regards to the cryptocurrency sector? Share your thoughts in the comments section below!

Images courtesy of Shutterstock, cvm.gov.br

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brasil, Brazil, Brazilian, commission, cvm, Exchange, hashbrasil, investment scheme, mining, N-Economy, scheme, SEC, Securities, Securities and Exchange Commission, Suspends

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Samuel Haig

Samuel Haig is a journalist who has been completely obsessed with bitcoin and cryptocurrency since 2012. Samuel lives in Tasmania, Australia, where he attended the University of Tasmania and majored in Political Science, and Journalism, Media & Communications. Samuel has written about the dialectics of decentralization, and is also a musician and kangaroo riding enthusiast.