The CVM division of the Brazilian Securities Commission now allows funds to invest in cryptocurrencies

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The Brazilian Securities Commission CVM has made it possible for money to invest in cryptocurrencies.

The organization released a fresh set of regulations that give financial investment funds the same safeguards as conventional investment assets like stocks and bonds while investing in cryptocurrency tokens, opening up new marketplaces for these businesses.

Securities Commission of Brazil CVM Regulates Investment in Cryptocurrencies for Funds

Following the approval of a new set of regulations by the Brazilian Securities Commission, established funds are now permitted to invest in cryptocurrencies, creating a new market for these organizations.

The regulations, which were adopted after President Jair Bolsonaro approved a cryptocurrency bill last week, govern cryptocurrency investments in a way that will allow these businesses to benefit from the same protections as those offered for conventional financial assets like stocks and bonds.

Not every asset will be permitted to join the portfolio of these funds though, as they must fit under the classifications laid forth in the recently enacted crypto law.

The fact that this new framework was released so soon after the country’s cryptocurrency law was approved demonstrates that Brazilian institutions are anxious to regularize the status of digital assets in a number of areas.

After initially refusing to allow funds to participate in cryptocurrencies in 2018, the Brazilian Securities Commission itself made a U-turn.

Months later, the commission modified this legislation to permit funds to indirectly invest in cryptocurrencies overseas.

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