Brazilian Watchdog to Ban Bitcoin Mining Investments

The Commission on Securities and Exchange of Brazil banned the trading of local HashBrazil shares
06 March 2018   174

The Commission on Securities and Exchange of Brazil (CVM) decided to stop trading in the "shares" of the investment mining project HashBrasil. According to the regulator, the services offered by the company and methods of attracting clients violate the legislation in the sphere of securities, reports CoinDesk.

The [Authority] has identified that the company and the individual mentioned above are publicly investment opportunity related to quotas in [a] bitcoin mining investment group ('HashBrasil'), using appeal to the public for the conclusion of contracts that may be included in the legal concept of security.

Brazil's Securities and Exchange Commission

In addition, CVM imposed on the organizers of HashBrasil a fine of R$ 5000 (about $ 1500) per day if they ignore the regulator's requirements. Soon after the decree was issued, the HashBrasil team announced in Facebook that the project was suspending its activities. 

20 % of University Students gain Cryptocurrency with Aid

The Student Loan Report along with Pollfish interviewed 1,000 university students with related loan debt
23 March 2018   157

It took them for 4 days to collect the data (from March, 16 till March, 20 of this year). All the participants were to ask the following question: Have you ever use student loan money to invest in cryptocurrencies like bitcoin?

The results were remarkable. The poll revealed that 21,2  % of current students with the loan debt have used aid money in order to fund a cryptocurrency investment. So, over one-fifth answered in the affirmative.

Drew Cloud, the leader of the Student Loan Report, clarified that the younger Americans are more active investors as they are rather optimistic about cryptocurrency. Therefore the students want to get involved in this subject in any way possible. Drew Cloud sincerely thought the percentage would be lower. He considers that any college student's budget is thin and limited, therefore some extra money may be used on rest, groceries, or books.

The Student Loan Report approved: student loan debtors would be to pull off such a manipulation as they are given their remaining loans to be used on “living expenses”. From time to time they borrow more than they end up needing for studies. College debtors`spending of the money is not officially tracked and this allows the leftover means to be spent in the way preferred by the student. Another important factor is loan debt payments often do not occur until after graduation, and generally 6 months after.

Mr. Cloud claimed that cryptocurrency was the most prevalent investment of 2017. The young Americans consider that digital money is a savvy way to spend their refund checks. Some students even suggest that they would be able to quickly pay their debts off (because “not long ago every virtual currency was experiencing seemingly unstoppable growth”).

A significant shortcoming from the survey are data concerning how much the average student of the university spent of their financial aid on cryptocurrency. It also would have been interesting to know what types of digital means students favoured.