Brazil’s Securities and Exchange Commission (CVM) has suspended the solicitation activities of Hashbrasil, a Bitcoin mining investment scheme, alleging that the company violated securities rules by conducting an unregistered public offering. According to the regulator, Hashbrasil and its operator, Leonardo Janiszevski, were publicly promoting investment opportunities linked to quotas in a Bitcoin mining investment group, potentially fitting the legal definition of securities or collective investment contracts.
Regulator cites unregistered securities offering
In its statement, the CVM ordered the immediate suspension of any offering of securities or collective investment contracts related to Hashbrasil. The watchdog said the company had carried out a public offering without registration, while also stating that Janiszevski was not authorized to operate in the securities market. The core issue, therefore, was not simply cryptocurrency mining itself, but the way the project was marketed and offered to the public as an investment product.
On March 1, one day after the CVM’s determination was published, Hashbrasil said on Facebook that it had temporarily suspended operations in response to the regulator’s comments. A notice on the company’s website said that, due to CVM Resolution 790, it had temporarily stopped accepting new VPS data-processing service contracts. At the same time, the firm said services for existing customers remained fully operational and that support channels were still active.
Brazil steps up scrutiny of crypto sector
The case reflects broader regulatory pressure on the cryptocurrency industry in Brazil. In January, the CVM announced that local investment funds were prohibited from purchasing cryptocurrencies, based on the agency’s view that crypto assets are not legally classified as financial assets. The Hashbrasil action suggests that enforcement is now extending to mining and revenue-sharing schemes marketed to retail investors.
The CVM also warned that if Hashbrasil continues operating in defiance of its order, Leonardo Janiszevski could face a daily fine of 5,000 Brazilian reais, or roughly $1,550. The move signals a tougher stance by Brazilian authorities toward unauthorized crypto investment offerings.