The Appeals Council of the National Financial System (CRSFN), released last Wednesday (29), upheld a Securities and Exchange Commission (CVM) decision against a cryptocurrency company.
According to the CRSFN’s own publication, on the website of the Ministry of Economy, the case strengthens the CVM’s decision, as it was the first case involving cryptocurrencies in Brazil.
Livecoins had disclosed that in February 2023, an ICO of a Brazilian cryptocurrency was fined by the securities market oversight authority. When he appealed and lost, the fine was upheld.
CRSFN Publishes Hearing Against Brazilian Cryptocurrency and Confirms CVM Decision Against Project
The case of Iconic, which issued a Brazilian cryptocurrency without CVM authorization, was finally reviewed by the council of the municipality. Thus, a fine was determined for the company responsible for the issuance, as well as for its partner.
However, the defense appealed to the CRSFN asking for a better review of the case. In a public hearing, now available on CRSFN’s YouTube, the lawyers claimed the case is first, meaning whatever the decision was, it could affect the future of the market.
Moreover, it is the first ruling since the CVM issued Advisory No. 40 to the cryptocurrency market, bringing more attention to the matter.
The first instance analyzed the process and came to the conclusion that the investment proposal offered by the appellants through their website would fit into the concept of collateral, which is a financial security that is traded daily on the financial market and can be of property or credit. . For this purpose, a Howey test has been applied in the project.
The decision of the first instance concerned the imposition of a fine on both appellants. The appeal forwarded to the CRSFN aimed at reforming the decision that held both the legal person and the natural person liable with a monetary penalty in the administrative sanctions procedure reviewed by the CVM, on the basis of violation of Article 19 of law 6.385/76 and article 2 of instruction CVM 400/03.
The Collegiate agreement was unanimous to maintain the fine for the legal entity and convert the fine into a warning for the private individual.
CVM has understood ICO since 2017
Still in 2017, at the height of ICOs in the cryptocurrency market, many tokens appeared all over the world, including in Brazil.
With that, the CVM published about ICOs, indicating that any new token created without authorization could pose problems.
“The CVM remains attentive to the evolution of ICOs and will, if appropriate, take appropriate measures within the framework of its legal authority, in due time, to ensure the stability and continued development of the Brazilian capital market.”
Now that the Iconic case has been closed, everything indicates that the case should serve as an example for ICO issuers in Brazil in the future.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
