Brazilian Regulator Allows Local Funds To Invest In Crypto
The Securities and Exchange Commission of Brazil (CVM) has allowed funds to invest in crypto assets via foreign platforms, according to the circular issued by the Ministry of Finance of the country.
As follows from the document, investment funds should invest only in those crypto trading platforms that fulfill the requirements of local regulators. Since there is always the likelihood of money laundering and other types of financial frauds, crypto exchanges should be regulated by the authorities empowered to stop such illegal activities.
The circular also states that the representatives of the funds must make sure that the tokens weren’t issued by fraudulent ICOs before investing their monetary assets.
The representatives of the Brazilian Ministry of Finance stressed that it is rather difficult to estimate the cost of a crypto asset. The only expedient solution may be an investment in those assets the price indicators of which are generally accepted by independent experts.
Earlier, the Securities Commission prohibited local funds from investing in crypto assets either in the state or through foreign digital exchanges.
However, the Brazilian government has become more favorable to the crypto industry. Thus, the Brazilian investment company Grupo XP intends to launch a crypto exchange for bitcoin and ether trading by the end of this year.
As previously reported, the Brazilian network of electronic and household goods has signed an agreement with the Airfox blockchain startup.