A determined bitcoin mining operation that was to offer securities was stalled by the Securities and Exchange Commission of Brazil (CVM).
In a recent report released on 28th of last month stated, the securities regulatory body confirmed that the initial Hash Brasil pitch to investors was unauthorized, analyzing the dazzle that went over various social media platforms, including Twitter and Facebook.
“The Regulator (CVM) recognized that the enterprise’s public scheme which proposes a favorable investment opportunity in bitcoin mining associated to ‘Hash Brasil’, taking advantage by engaging citizens for the closure of contracts may lead to a inclusion in the legislation of security”, the organization mentioned in a rough statement.
The Brazilian Commission also warned the operators of Hash Brasil with a penalty of about $1,500 on failure to adhere to the suspension.
Sources reveal the imposing is likely to result in nothing but a terminated project. In response to a post on Facebook, the very next day after CVM’s first statement (March 1st) – the team backing the enterprise (Hash Brasil) decided to discontinue their activities for the time being.
They informed the media that they would take appropriate steps to safeguard the interest of their customers within the legal framework.
In October last year, the CEO of the Central Bank of Brazil said that he considers bitcoin to be a pyramid scheme, this resulted in a negative take on cryptocurrencies by the regulators.