Regulator of Brazil has allowed the investment funds to invest in cryptocurrency
The Brazilian regulator, Comissão de Valores Mobiliários (CVM), allowed mutual funds to invest in the cryptocurrency ecosystem, through derivatives and foreign funds.
According to the Ministry of Finance of Brazil to the Directive, investment funds can also invest in “other assets”, pay under other jurisdictions, if they are regulated by the local regulators “have the power to limit illegal practices.”
According to the publication in the news publication Portal do bitcoin, the new rules allow the funds to acquire a stake in foreign funds, whose portfolio consists of a cryptocurrency like bitcoin, Ethereum, litecoin.
The Ministry of Finance also urges to implement preventive measures, to avoid fraudulent acquisition of token-ICO and conflicts of interest.
It is noteworthy that in the previous Directive the chief of Department on interaction with institutional investors, Daniel Maeda, explained that direct investment in crypto currencies investment funds are prohibited.
In September also it became known that the Antimonopoly service will check Brazil 6 major national banks in monopolistic practices against cryptocurrency companies, and the Central Bank of Brazil announced the creation of a blockchain-based platform for the exchange of information between agencies.
Subject to the easing of regulatory measures, Brazil could become a significant region from the point of view of the cryptocurrency investment: statistics shows that the country is two times more investors in bitcoin than in other markets.
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