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The country's funds are not allowed to invest in virtual currency

The Brazilian Securities and Exchange Commission (CVM) announced on Friday that it was forbidden for its funds to invest in cryptocurrencies. At the moment, regulators in the country are preparing regulatory mechanisms for cryptocurrencies, and seven public hearings have been held to discuss the matter.
This Friday, the Brazilian Securities and Exchange Commission (CVM) issued a circular on Friday to all officials in the country managing investment funds that "it is not permissible to invest directly in cryptocurrencies." The Reuters report said: "Cryptocurrency does not belong to financial assets, regulatory CVM is actually prohibited by the fund assets directly invested in bitcoin cryptocurrencies." In addition, on the possibility of using foreign investment in the form of indirect encryption Currency, the current need to wait for further confirmation by regulators.

In May last year, the Brazilian House of Representatives set up a special committee to discuss the issue of Bitcoin cryptocurrency regulation.

In the second half of 2017, seven public hearings were held to debate the issue.

In December last year, CVM and the Central Bank of Brazil issued a joint statement warning of the risk of cryptocurrency investment.

Also in December, House of Representatives Expedito Netto officially proposed that encrypted currency transactions should be banned unless legally "permitted", with offenders offering imprisonment for one to six months or fines. However, Expedito Netto does not have a clear "permission" meaning.

At a public hearing held in Brazil's House of Representatives in December, Jonasa Ramalho, executive manager of BNP Paribas, argued that their regulation of bitcoin and similar assets not only provided a more favorable environment for the development of cryptocurrencies , but also Banks have opened the door to providing products and services in cryptocurrencies.