Hasbrasil mining investment scheme activities has been suspended by the Brazilian Securities and Exchange Commission accusing the firm of breaching securities law.
The CVM made an announcement, stating that the firm’s operator, Mr Leonardo Janiszevski and Hashbrazil were providing virtual currencies initial offering which is an opportunity for virtual currencies investment in connection to the rations in a Bitcoin mining investment group, in use of a request to the public for the completion of contracts that might be added in the legal definitions of a security in the past seven days.
As a result, the Brazilian Securities and Exchange Commission has declared the instant holdup of any securities or collective investment contracts provided by Hashbrasil, noting that the firm made an initial offering with no registration and that Mr Janiszevski is not approved by authorities to partake in any activities found on the securities exchange market.
In response to the authorities comments, Hasbrasil posted on facebook noting that the firm had briefly stop operations, this was done the day after the publication of the CVM’s determination, precisely on March 1st. As narrated through a translation, the firm’s website presently noted that as a result of CVM resolution 790, hasbrasil has temporarily hold up on hiring new VPS in the role of data processing, notwithstanding the statement continues to elaborate that the VPSs of their present clients are fully operational and support is given as well by the firm to their clients.
Currently, the Brazilian Securities and Exchange Commission has shown a rise in the willingness to take legal actions against cryptocurrency firms. The securities authorities have declared that local investment funds are not allowed to buy virtual currencies based on the CVM emphasis that virtual currencies do not have a legal status of a financial asset.
In attempts to undermine this declarations made by the Brasil securities and exchange commission, as a result of the continuity of hashbrasil operations, the CVM cautioned that Mr. Janiszevki will be charged a daily fine of 5,000 BRL (an estimated USD 1,550)