BRASILIA: 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.
This decision is without any 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.BOMESP is the first global exchange specifically devoted to business cryptocurrencies.it is an initiative of the Niobium Foundation, and is scheduled to be fully up and running in the 3rd Quarter of 2018. 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.
