Brazil takes steps to stop bitcoin mining firm

The Securities and Exchange Commission has suspended the activities of HashBrazil as it is not registered as a securities issuer

What has happened?

Brazil's securities regulator has suspended the activities of a bitcoin mining operation.

What does this mean?

In a statement, the Securities and Exchange Commission (CVM) informed market participants and the public that HashBrasil and Leonardo Janiszevski were not authorised to engage in any activity on the securities market, as they are not registered as a securities issuer.

"The Authority has identified that the company and the individual mentioned above are publicly offering, on social networks and on [a] website an investment opportunity related to quotas in [a] bitcoin mining investment group ('HashBrasil'), appealing to the public for the conclusion of contracts that may be included in the legal concept of security," the statement said.

The CVM determined to suspend any securities offering by HashBrazil.

It also said a daily fine of R$5,000 would apply in case the suspension is not complied with.

The CVM said that anyone receiving an investment proposal from HashBrazil should get in touch.

A few days after the CVM announcement, HashBrazil indicated on its Facebook page that it had suspended its activities.

Next steps

If you want to take advantage of blockchain's huge potential and disruptive impact, while avoiding falling foul of ever-developing regulatory and legal requirements, visit our Hogan Lovells Engage Blockchain Toolkit.

Contacts
John Salmon
Partner
London
Languages English
Topics Blockchain
Countries Brazil

 

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