Brazilian SEC confirms: digital currency Niobium Coin (NBC) is not a financial asset
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BOMESP (Bolsa de Moedas Virtuais Empresariais de São Paulo) e Fundação Niobium22 Jan, 2018, 18:33 IST
New cryptocurrency gets green light from regulatory agency for Brazil's capital market. The asset will serve as a reference for transactions in cryptocurrencies conducted on the newly launched exchange, Bolsa de Moedas Virtuais Empresariais de São Paulo (BOMESP)
SAO PAULO, Jan. 22, 2018 /PRNewswire/ -- Brazil's Securities Exchange (CVM - Comissão de Valores Mobiliários), regulatory agency for Brazil's capital market, the equivalent of the U.S. Securities & Exchange Commission (SEC), made a decision at the start of 2018 without precedent anywhere in the world. It determined that the digital currency Niobium Coin (NBC) is not a security.
As a result, the new cryptocurrency, which will serve as a reference currency for transactions on the future Business Virtual Currencies Exchange of São Paulo (BOMESP - Bolsa de Moedas Virtuais Empresariais de São Paulo), will not be considered a financial asset, and will therefore not be subject to CVM oversight. To purchase Niobiums and participate in the ICO, one need only go to https://niobiumcoin.io/
"This decision is without precedent in the international financial system, and opens up an enormous space for ICOs," says Fernando Barrueco, Director of BOMESP, which will operate globally.
"With the green light from the Brazilian SEC, the expectation is that, when we launch the crowdsale of Niobium Coins, we will have an even greater demand starting now," exults Barrueco.
"Any company interested in raising funds to invest in its own projects will have the opportunity to do so by issuing its own business virtual coins, which is the purpose of BOMESP," notes Barrueco.
In its decision, the CVM classified Niobium Coins (NBC) as "utility tokens." The easiest way to explain this is to think of a school fair. People taking part can buy tickets to exchange them for gifts, but cannot use them outside the fair. The same applies to Utility Tokens. They have value to enable transactions, but they do not have monetary value, as the technical department of the CVM has clearly demonstrated.
According to the CVM, virtual currencies are to be considered securities only when they classify as investments. That is to say, when they pay interest or dividends to their investors, or when they enable participation in company management through votes.
About BOMESP - The first global exchange specifically devoted to business cryptocurrencies, the Business Virtual Currencies Exchange of São Paulo (BOMESP - Bolsa de Moedas Virtuais Empresariais de São Paulo) is an initiative of the Niobium Foundation, and is scheduled to be fully up and running in the 3rd Quarter of 2018. To learn more, go to: http://bomesp.org/
About Niobium (NBC) - The first virtual currency launched by a Brazilian issuer, Niobium (NBC) is being issued to finance the development of BOMESP, and to serve as the reference currency as well as the exchange currency among the various cryptocurrencies traded on the platform. The Initial Coin Offering (ICO) of Niobium (NBC) is based on second generation BlockChain, using Ethereum smart contracts. To find out more, go to: https://niobiumcoin.io/
About the Niobium Foundation – An international non-profit institution, the Niobium Foundation is made up of the leading global authorities on virtual currencies. Among the Brazilian members are Fernando Barrueco, Alessandro Brandão and Vanda Scartezini. A specialist in Digital Law, Barrueco helped to establish the Brazilian Civil Rights Framework for the Internet. He holds a Master's degree in tax law from PUC/SP, and is a partner at the law firm, Perrotti e Barrueco Advogados, as well as Chairman of the Board of Directors of the Nemirovsky Foundation at the Pinacoteca do Estado de São Paulo. Brandão has done postgraduate study in Systems Analysis, holds an MBA in Executive Business Management from the Getúlio Vargas Foundation, and is a founding partner of Intec TI Logística, in charge of the technological facilities of the companies Cielo and Rede in Brazil. Scartezini, an electronic engineer, is a professor at the Polytechnic School of Engineering at the University of São Paulo (POLI-USP - Escola Politécnica de Engenharia da Universidade de São Paulo), and was Secretary of Technology for the Ministry of Development, Industry and Foreign Trade (MDIC), as well as Secretary of Computer Policy for the Ministry of Science and Technology (MCT), and President of the National Institute of Industrial Property (INPI - Instituto Nacional de Propriedade Industrial).
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