certify
Home arrow Article arrow Article Detail

Brazilian Securities Commission released a new regulatory framework for investment funds

Profile Image

Joyashree Dey Follow

INDIA

Jan, 12 2023

Jan, 12 2023

likes | comments 0

Article Image

The Brazilian Securities and Exchange Commission (CVM) gave the green light on December 23 for investment funds to purchase cryptocurrencies. This choice permits investment funds to function in the cryptocurrency market while also putting in place safeguards to guarantee the legitimacy and ownership of assets.


The CVM has declared that specific requirements stipulated in a new regulatory framework established by a law signed by the outgoing Brazilian President, Jair Bolsonaro, must be met in order for crypto assets to be included in investment fund portfolios.


A new regulatory framework for investment funds was just made public by the Brazilian Securities and Exchange Commission, and it now permits the inclusion of cryptocurrencies in these funds. The regulator emphasized the significance of keeping a tight grip on the existence, ownership, and integrity of assets in this emerging market segment.


In accordance with the legal framework for the industry that President Bolsonaro approved, crypto assets must meet specific requirements in order to be included in a portfolio of investment funds. 

If they are traded through organizations recognized by the CVM or the Brazilian central bank, or through a local supervisor in the case of operations carried out in another nation, digital assets may be incorporated into investment funds.


These organizations must be legally qualified to supervise and audit ongoing operations, including putting safeguards in place to stop money laundering and terrorism financing. The Brazilian Securities and Exchange Commission published market recommendations on the cryptocurrency industry in October.


Although the word "crypto assets" is not used in this article to define "securities," market participants must evaluate each asset's attributes to decide if it qualifies as a security. The CVM is not needed to approve or register the tokenization of assets, but token issuers and open token offerings will be governed. 


likes | comments 0

Profile Image

Joyashree Dey

CBW - External Analyst

INDIA

Comments
Data Centre Construction - World First artificial intelligence AI-Tech Utility Token
banner
Article
NFL Announces Inaugural Super Bowl 'Metaverse' Concert on Roblox Platform

The NFL is taking a step into the future by hosting the first-ever virtual Super Bowl concert on the massively popular online gaming platform, Roblox. Set to take place during Super Bowl weekend...;

Disclaimer: The information is for informational purposes only.​ This advertisement does not constitute financial advice or any other advice. You should consult with a financial professional to determine what may be best for your individual needs. None of the information and/or content available through this advertisement is intended as an offer or solicitation of an offer to buy or sell, or as a recommendation, endorsement, or sponsorship of any company, financial product, security or commodity. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable or result in any investment or other losses. In Making the investment decision, investors must rely on their own examination of the issuer and the terms of the offerings, including the merits and risks involved. Investments are speculative, illiquid, and involve a high degree of risk , including the possible loss of investment.