Report: Brazil Regulators Move To Block Bitcoin Mining Investments

March 6, 2018 10:04 pm Published by

An offering for HashBrasil being pitched to investors was not authorized and Brazil’s Securities and Exchange Commission (CVM) has now stepped in to suspend the offer of securities, CoinDesk reported Tuesday.

In a Feb. 28 statement, the securities regulator declared the HashBrasil offering was unauthorized, identifying how the solicitations were playing out across social media channels, including Facebook and Twitter, the report said.

“The [Authority] has identified that the company and the individual mentioned above are publicly offering…an investment opportunity related to quotas in [a] bitcoin mining investment group (‘HashBrasil’), using appeal to the public for the conclusion of contracts that may be included in the legal concept of security,” the agency wrote, according to a rough translation of the statement.

If the operators of Hash Brasil failed to comply with the suspension, the report said, the agency also threatened to fine the operators of Hash Brasil R$5,000 per day – worth roughly $1,500.

In a March 1 Facebook post – the day after the CVM’s initial statement –  the team behind Hash Brasil indicated they had temporarily ceased their activities in light of the posting.

“We will be informing the measures that will be taken by us to defend and preserve the interests of our customers, always in a regular and legal way,” the statement read.

In the past, regulators in Brasil have struck a largely dismissive tone on cryptocurrencies, CoinDesk reported, including critical comments from the country’s central bank. Last October, for example, central bank chief Ilan Goldfajn said he believes bitcoin is a pyramid scheme., Jack Durschlag

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