Brazil Bans Funds From Negotiating in CryptoCurrencies

Brazilian officials believe the virtual currencies are too risky, but investors' interest continue to surge.

By Lise Alves, Senior Contributing Reporter

SÃO PAULO, BRAZIL – Due to the risks associated with cyber transactions, crypto-currencies such as the popular Bitcoin, will not be accepted as a financial asset by investment funds, Brazil’s Securities and Exchange Commission (CVM) said on Friday.

"The CVM's technical area informs investment fund managers that Crypto-Coins cannot be classified as financial assets,” said the statement issued to funds last week and signed by Institutional Investor Relations Superintendent Daniel Maeda. “For this reason, no direct acquisition of these virtual currencies is allowed by regulated investment funds,” concluded the note . . .

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