Brazilian Securities Commission’s CVM is the way to raise funds Opened up Dive into cryptocurrency-based investments. The institution will issue a new set of rules that will allow financial investment funds to invest in cryptocurrency tokens with the same protections offered to other investment assets such as stocks and bonds, opening a new market for these companies. opened.
Brazilian Securities Commission CVM Regulates Cryptocurrency Investments of Funds
Brazil presents another step towards normalizing and adopting cryptocurrencies as an investment vehicle. did. The Brazilian Securities Commission,approved a new set of rules allowing established funds to invest in cryptocurrencies, opening up new markets for these institutions.
The standard passed after President Jair Bolsonaro authorized the cryptocurrency law last week would allow these companies to use cryptocurrencies in a way that allows them to enjoy the same protection as other investment assets such as stocks and cryptocurrencies. regulating investment. bonds.
The Approved Framework specifically requires that cryptocurrency operations must be conducted on exchanges approved by the Central Bank of Brazil or the Brazilian CVM. If these are made offshore, the investment should be supervised by a local supervisor.
In any event, these agencies have “legal powers to supervise and inspect activities carried out, such as curbing market abuses, money laundering, terrorism financing, and arms proliferation.” have ‘of mass destruction.
However, not all assets are permitted in the portfolios of these funds. Because these assets must fall into the categories outlined in the newly approved cryptography law.
Adoption and Evolving Regulation
The issuance of this new framework comes just days after the country’s approval of cryptocurrency legislation, which will allow Brazilian institutions to determine the status of these assets. indicates a willingness to normalize in multiple countries. area. The Brazilian Securities Commission itself, having denied the opportunity for funds to invest in cryptocurrencies in 2018, implemented a change of course. Brazil has shown a significant level of crypto adoption by both citizens and businesses. According to figures provided by the Brazilian Tax Authority (RFB), about 42,000 companies bought cryptocurrencies in October, setting a new buying record.
The same purchase record was broken in September when nearly 1.5 million people bought cryptocurrencies, except for individuals. Due to this popularity, several traditional digital institutions such as Nubank, Itau and Santander have launched or will offer cryptocurrency services in the country, and a digital version of Brazil’s legal tender, the real, is also in development. .
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