The instability and a possible first drop in the value of Bitcoin in the first month of the year have led to heated discussions about the risks and the problem of the lack of regulation of this new form of investment in the country.
Cryptocurrencies are operated digitally and outside the National Financial System, with a methodology in which information is validated by thousands of computers around the world, ensuring that a given transaction is carried out securely. The difficulty of breaking this validation system by an external attack is very great or, as some people believe, practically impossible.
It turns out that, despite the security in validating information, investors are projecting themselves into a gigantic risk scenario due to the lack of regulation on the subject. While the activity of traditional investment companies in the market is regulated and supervised by the Securities and Exchange Commission (CVM) and the Central Bank, companies operating with cryptocurrencies do not have to comply with the rules of these bodies designed to control the origin of funds and protect investors from risks.
Some cryptocurrency intermediary companies are registered with the Board of Trade with other activities, such as "printers", "real estate agents" or "consultancies". And because of this, the risk of fraud increases as the investor assumes a business risk (in addition, of course, to the high volatility of digital currency), due to the lack of formal regularization by some of the companies operating in this segment.
With the popularization of cryptocurrencies and the increase in demand, some investors have faced problems with digital currency companies. The first precaution to be taken is to make sure that it is a serious company with a track record, good references and a consolidated address in Brazil. If there is any conflict arising from digital currency transactions, a lawsuit may be the solution to seek compensation for any damage caused by the cryptocurrency operator. To do this, it is important to have financial transaction records, registration documents, emails from negotiations with the company, conversations and other documents that prove the link between the parties and the amounts involved in the transactions.
Another precaution is to declare digital currencies in income tax. In January, the CVM issued a statement warning about the risks of digital currency transactions and prohibiting investment funds from holding cryptocurrencies in their assets. Even so, the IRS interprets the situation differently, understanding that any acquisition over R$1,000.00 should be reported as "Other Assets". For high-value transactions, it is always a good idea to consult a financial market specialist, as well as a trusted lawyer, so that any risks are minimized and there is the possibility of effective redress in the event of damage to the investor's assets.
