The Commission on Securities and Exchange of Brazil (CVM) decided to stop trading in the “shares” of the investment mining project HashBrasil. According to the regulator, the services offered by the company and methods of attracting clients violate the legislation in the sphere of securities, reports CoinDesk.
“[The Office] determined that the company and the person named above publicly offer opportunities for investing in the investment group HashBrasil engaged in bitcoin mining. Potential investors are invited to enter into contracts that, from the legal point of view, fall under the definition of securities,” the document says.
In addition, CVM imposed on the organizers of HashBrasil a fine of R$5000 (about $1500) per day if they ignore the regulator’s requirements. Soon after the decree was issued, the HashBrasil team announced in Facebook that the project was suspending its activities.
“We will continue to inform about the measures taken to protect the interests of our clients within the framework of the law,” HashBrasil said in a statement.
Earlier CVM said that local investment funds are prohibited from investing in cryptocurrencies.