The regulators of Brazil, prohibit fund managers to invest in crypto-currencies

The SEC of Brazil announced on Friday that the local investment funds were not allowed to invest in the digital currency. The regulators of the countries are currently working on the regulation of crypto-currencies. Various meetings have already been held to discuss this topic.

If you missed this announcement, here are the details :

No crypto-currency is not allowed in the country

The DRY brazilian has issued on Friday a circular to all the officers of the administration and management of investment funds in the country. He said that direct purchases of digital currency through the investment funds are not allowed. Reuters has stated that crypto-currencies cannot be considered as financial assets. The person responsible for the regulator decided to prohibit the fund from investing directly in assets such as the Bitcoin.

Source : Mohamed Hassan, Pixabay. What will be the future of Bitcoin in 2018 in Brazil ?

On the other hand, clarification of the part of the regulator will allow local funds interested to invest indirectly in virtual currency taking an interest in foreign funds. This circular states in particular, that the regulator considers that it is appropriate for fund managers to wait for the publication of additional notes on this topic.

Brazil is working on a regulatory framework for the market

The brazilian Parliament has established a special committee in may to discuss the regulation of crypto-currencies such as Bitcoin. Seven meetings have already taken place in the second half of 2017 to discuss this subject. In December, the central Bank of Brazil has issued a statement cautioning investors against the risks associated with digital currencies.

The brazilian government has also made formal recommendations concerning the ban on crypto-currencies, especially the Bticoin. All buyers and sellers of Bitcoins can incur prison sentences ranging from 1 to 6 months. Brazil is actively seeking ways to regulate this market. Until a mechanism is put in place, the exchange of virtual currency will be banned in the country.

Source : NewsBitcoin