Bitcoin Attacked By Brazil’s Securities Commission, Under The Control of International Finance

• First State Openly Attacks Bitcoin, Brazil’s version of the SEC
  
• World Financial Powers Behind Action by Brazil Against Bitcoin? A long history of oppression by Washington in the Country Suggests So
• “Is Bitcoin being recognized by the Brazilian government as a currency now?”

The equivalent of the Securities and Exchange Commission of Brazil, Comissão de Valores Mobiliários or CVM, has signed a decision ordering the administrator of Grupo de Investimento Bitcoin to cease the government-perceived investment fund.   The fund is currently operating with less than $4,500 USD (!).  For a peasant in the U.S. trying to raise a family, that is a monthly wage, barely a cell on the financial serpent’s tongue. At Grupo de Investimento Bitcoin, the only funds accepted for investment and profit-taking are bitcoins. Of the decision by the CVM, the group was not informed. Nonetheless, they have been suffering fines of R $5,000 per day, despite not knowing the fine. The group learned through an attorney of the actions being taken against it. (likely, the government collections arms will not except bitcoin)

This is no surprise coming from a government that has arisen in the aftermath of a U.S. and western-led coup. . Brazil experienced a coup in 1964, in which the U.S. and the partners, according to Noam Chomsky, installed “the first of a series of neo-Nazi National Security States and [initiated] a plague of repression without precedent in the hemisphere, always strongly backed by Washington” and hailed of course by the establishment as a great triumph for freedom and democracy. In 1976, during this brutal reign of oppression,  the CVM was formed.

Since those days, the atavisms of extreme state brutality have given way in Brazil and many other countries to the tightknit democracy of today, with its nudging emphasis on conformity and discipline. This new system in Brazil allowed there to be elected a President earlier this century on a populist platform. But, as Chomsky has stated regarding the current  Brazil, and naturally therefore other countries, “It should hardly be a secret that neoliberal mechanisms are well designed to restrict very narrowly the threat of democracy. As long as Brazil accepts them, the elected President must reject the program on which he was elected, and follow the orders of the international financial powers and investors even more rigorously than his predecessor, so as to ‘establish credibility’ with the masters of the world. ”

Grupo de Investimento Bitcoin has released a statement, comparing the action by the Brazilian government to internet censorship a la China. The release claims that the offering was never based in Brazil nor was it publicized to those in Brazil. The group stated in the release that “[Grupo de Investimento Bitcoin] has no flag and no country. It is decentralized and universal, just like [bitcoin].” As a pseudonymous currency, it will cost millions to trace where the funds originate. In the release, the group asks: “Is Bitcoin being recognized by the Brazilian government as a currency now?” This is the first public instance that a government organization has classified bitcoins as securities. It marks also the first time a regulator in any country has ordered a bitcoin-related entity to end all transactions involving bitcoin.

According to Bitcoin Money, the exchange works as such: Investors who put up funds can withdraw their balance after a thirty day cycle. Their investment will have either increased or decreased in value in relation to something, like a fiat currency – say, the U.S. Dollar or Euro. Funds not withdrawn after a given cycle can then be used towards subsequent investment rounds. The group has been operating since October 2011 and investors from more than eight different countries have joined the investment group. The only fees associated with the fund is 5% on income.

The decision out of Brazil comes as the web of commerce around bitcoin grows. It is as if bitcoin is the King of virtual currencies, bringing the video game to the analog world, and so too the public. The public has the option to trade on the Global Bitcoin Stock Exchange (GLBSE) and others, and for bitcoins they can work and, in turn, buy fiat currencies or things. As Bitcoin Money writes, “These are all unincorporated, transnational voluntary associations that are registered with no regulatory authority.  The funding transactions for these investments occur using bitcoins, allowing these entities to operate nearly entirely online with no interaction directly with the banking systems.”

It’s an anarchy currency, and it can change the fundamentals of businesses. It will begin with small business, and could take on a life of its own transforming big business. Big players are already funding USD based virtual currencies, via the Square platform, as if to steal bitcoin’s thunder and tie virtual mediums of exchange to the old-skool top-down innovation model, as well as the entrenched financial system. The p2p format of bitcoin has the opportunity to prove more agile an innovation.

As the Brazilian regulator’s action indicates, the commanding heights of the global dictatorship has taken notice to bitcoin, and its potential power. The fund against which they took actions is but a flake of gold in the ocean – at this point, that is, and this is what the powers-that-be recognize. It has potential to behave like p2p file sharing, an innovation that bankrupt nation-states cannot afford to tackle.