Brazilian funds prohibited to invest in cryptocurrency

The Brazilian commission that regulates securities and exchange has decided to forbid the local funds to invest in cryptocurrency. This has been confirmed by several news websites dedicated to cryptocurrency and the blockchain tech.

According to the data in possession of reporters, the CVM, as this Commission is abbreviated, believes that cryptocurrencies are simply not financial assets. This means that investing in them is also undesirable, the governmental body notes.

The companies which are going to try to invest in cryptocurrency through foreign proxies and/or partners are specifically warned about such business being unlawful and they should better await further regulator’s instructions.

The overall position of the Brazilian authorities on cryptocurrency reminds of almost equal opinion of Indian authorities: the suspiciousness towards the market and the trend towards more prohibition. Although the media tells that debates on the legal status of cryptocurrencies still happen sometimes. For example, the executive of Banco do Brasil, Jonatas Ramalho, has voiced support for more soft approach, which can be characterized as “supervision instead of prohibition”.