In Brazil, local investment companies have become able to buy cryptos via derivatives and shares in overseas funds, following the corresponding permission issued by Brazil’s securities regulator, Comissão de Valores Mobiliários (CVM).
According to the local media, for now, the companies can make investments in cryptos that are traded in foreign jurisdictions in case of effective regulation there. Specifically, it was stated that Brazilian investors would become able to buy shares in overseas funds that are represented mostly by the digital coins.
However, illegal activities still can take place, especially in the crypto segment, which is highly vulnerable to different fraud schemes. The authority noted that investments might be made via regulated platforms that provide transparent and easy-to-access services as well as controlled by the corresponding authorities.
Earlier this year, the Brazilian authority banned local funds from crypto investments both directly or via foreign organizations. Brazil has revised its stances towards cryptocurrencies, which supported activity in this segment.