Brazil's Securities and Exchange Commission (CVM) has suspended the securities offering related to a bitcoin mining operation in the country, CoinDesk reported.

In an official statement dated February 28, the CVM said that HashBrasil is not authorized to engage in any activities on the securities market, noting the efforts by the company across its social media channels.

"The [Authority] has identified that the company and the individual mentioned above are publicly offering...an investment opportunity related to quotas in [a] bitcoin mining investment group ('HashBrasil'), using appeal to the public for the conclusion of contracts that may be included in the legal concept of security," the CVM said.

In addition, the securities regulator said that a fine of R$5,000 per day would be imposed on the operators of HashBrasil if they fail to comply with the suspension.

Complying with the CVM’s measures, HashBrasil announced that it has temporarily suspended its activities.

“We will be informing the measures that will be taken by us to defend and preserve the interests of our customers, always in a regular and legal way,” HashBrasil said in a statement.

Earlier this year, the CVM issued a circular prohibiting local investment funds from buying digital currencies.