Crypto Space In Brazil
“Cryptocurrencies cannot be defined as financial assets … and for this reason, their direct purchase by investment funds … is not permitted,” said Brazil’s securities regulator the Comissão de Valores Mobiliários (CVM). The announcement was made on January 12.
According to the document the cryptocurrency investments are still in their early stages in CVM circles and this institution might ultimately determine that existing regulations “prohibit, restrict, or even criminalize trade in such investment vehicles.” Any investment, which is made by that scheme, consists risks to lose it as a result of cybersecurity vulnerabilities or future pronouncements regarding the legality of that investment.
The CVM hasn’t made any final conclusions yet, but the body recommends investors to wait further instruction before setting indirect investments in digital currencies.
Earlier in 2017 the CVM announced that the digital currencies associated with certain token offerings, or ICOs, fit its definition of securities, and said that entities, which offer them would be subject to penalties. Moreover, the statement banned legal trading on cryptocurrency exchanges.