HashBrasil Cryptocurrency Mining Scheme Shutdown By Brazil’s CVM

At the end of February, the CVM (a governmental Brazilian Commision for business and investments) has decided to shut down the activities of a Brazilian cryptocurrency mining company called HashBrasil. The company, which was getting increasingly popular during the first months of 2018, has ceased all of its activities.

Why CVM Has Shut Down HashBrasil

During February 28, the governmental agency has stated that HashBrasil was acting illegally because it was offering its services via Facebook and Twitter. Leonardo Janiszevski, the owner of the company, was publicly offering investment opportunities on social media using contracts which were considered by the company as contracts with legal investment value.

The Brazilian law does not allow this type of transaction to be made without regulation on social media, so the CVM decided that the mining company had to cease all of its activities or it would pay a daily fine of R$5000 BRL (around $1500 USD).

The Future Of HashBrasil

There are signs that HashBrasil is not done yet. The company has stated on Facebook only a day after the shut down from the government that it was temporarily ceasing its activities and that it would be coming back soon.

“We will inform the measures which will be taken by us to protect ourselves and preserve the interests of our clients, always in accordance with the law”, the company stated.

The Brazilian government and the financial regulators still do not believe in the potential of the cryptocurrencies. Regulators are often critical of the cryptocurrencies and the Brazilian Central Bank president, Ilan Goldfajn, has stated that Bitcoin is a Ponzi Scheme last October.

Follow our blog for the development of this story.

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