BRAZIL: CVM Forbids Funds From Investing In Bitcoin. Other Cryptocurrencies

(RTTNews) - The Brazilian Securities and Exchange Commission barred the country's investment funds from investing in bitcoin or other cryptocurrencies because they are not qualified as financial assets.

"As is well known, both in Brazil and in other jurisdictions, the legal and economic nature of these investment modalities has been discussed, with no conclusion on such a conceptualization, especially regarding the domestic market and regulation," affirmed the CVM.

The CVM also noted that fund managers who are keen to structure funds that contain indirect investments in crypto-currencies should wait for a more "conclusive" assessment by the institution.

"In the understanding of our technical team, it is undeniable that [...] there are still many other risks associated with the very nature of the cryptocurrencies (such as cyber security risks and private custody), or even related to the future legality of its acquisition or trading," the CVM said.