HashBrasil announced a suspension of their activities on March 1 following the threats. Regulators in Brazil have said cryptocurrencies are not a financial asset and direct investment and therefore disallows.
CVM also threatened to impose of a fine of R$5,000 (about $1,500) per day if they fail to comply with the suspension. CVM said the company was promoting its offerings through social media including Facebook, Twitter, and other accounts.
The mining firm moved to stop their activity after the announcement. They detailed this in a March 1 post on their Facebook page.
“We will be informing the measures that will be taking by us to defend. It also preserve the interests of our customers, always regularly and legally.”
They are yet to give any further directions on the same since March 1.
Brazilian regulators have not been friendly to cryptocurrencies, with Ilan Goldfajn. The central bank chief saying in October last year that he believes Bitcoin is a pyramid scheme.
The Securities and Exchange Commission of Brazil also announced in mid-January this year that cryptocurrencies are not considered a financial asset and direct investment and therefore disallowed. Thus, any fund looking to invest via foreign fund “should await further clarification” according to the announcement. However, various startups are dealing with the use of blockchain in multiple sectors, already operating in Brazil.