Wednesday, January 19

Pyramid investigated goes to senate to talk about Bitcoin regulation

The issue of cryptomarket regulation in Brazil is something that has been discussed since mid-2015 and is very important for the future of this sector in our country. With all this importance, many people were taken by surprise with the presence of Antônio Inácio da Silva Neto in the Economic Affairs Committee with the debate on the cryptomarket, considering that he and a company managed by him are accused and investigated for the formation of a financial pyramid.

It took place this Thursday, 9th, another stage in the discussion on the cryptocurrency market in the Economic Affairs Committee in the Senate. The Commission quoted with the presence of different representatives and specialists from the cryptomarket who were invited or registered to speak their considerations on the subject.

However, the presence of Antônio Inácio seemed a little “out of the curve” because of his past. For example, Antônio Inácio is accused of having an association with the D9 financial pyramid, at the time using the name Antônio Neto Ais, as shown by the Bitcoin Portal.

Antônio Neto Ais

More recently, Antônio Inácio da Silva Neto founded Braiscompany, self-styled as “the largest blockchain technology company in Latin America”, as described in paid matter posted on different websites. The company also claims that it operates within the “Cryptocurrency Lease” market, which is a type of activity that takes place in the cryptomarket, mainly on DeFi platforms.

However, what draws attention is that, among its promises, Braiscompany promises returns of 10% to 15% per month for investments in Bitcoin. As we know, a return to this level is generally very difficult to guarantee in the cryptomarket, even in derivative products, and this type of promise has historically always been linked to illicit schemes. No wonder the company has recently caught the attention of industry analysts and even justice.

Treated as a “Blockchain Specialist” by the Senate Committee, Antônio Inácio stated that the legislative concern in relation to the market is really important.

“This initiative for Brazil is of paramount importance, as it is an extremely innovative and disruptive market, this legislative concern is necessary given the growth that this market has had. The legal understanding of this market will bring security to users and to our nation”, said silva neto to the commission

He also spoke about the importance of this new technology that is “transparent, useful and inviolable” and that agencies and lawmakers need to understand how to adapt the blockchain into their monitoring and control systems so that they better understand this technology.

Silva Neto also defended the importance of communication from Banks, Brokers and Regulators to monitor capital gains and taxation concerns. His considerations are quite common and well aligned with the idea of ​​government control of the sector, but what really caught my attention was his second consideration, this time about financial pyramids.

Investigated for connection with financial pyramids asks to fight financial pyramids

During his second participation during the Economic Affairs Commission, Antônio Inácio spoke about the financial pyramids and mainly how they have been happening in Brazil in a “sadly way” and that they are staining a “highly legal, liquid and profitable” market.

During this second part of his participation, he also stated that companies that operate cryptocurrencies, but raise funds in fiat currency, are a “great sign of a pyramid” and that they must always be authorized by the CVM.

“It is very easy to be typified a crime against the popular economy, the raising of funds in fiat currency, this is a very strong indication, and that has been happening for many years in Brazil, in a sad way…”

These considerations coming from someone who is suspected of involvement in financial pyramids, not to mention that his definition of “very strong evidence of pyramid” is at least very limited, after all many other things indicate that a company is illicit, for example ( and an even stronger clue) promises of guaranteed, high returns on an investment, such as a promise of 10-15% monthly returns.