Indirect investment in cryptoactive is possible, but requires precautions: CVM

The recommendation of the municipality is that the investments are made through trading platforms (exchanges) subject to the supervision of regulatory agencies.

Investment funds regulated by the Brazilian Securities and Exchange Commission (CVM) are authorized to invest indirectly in crypto assets, but managers and auditors are required to conduct certain steps in the acquisition and maintenance of these portfolio assets, the regulator said, as per Reuters.

The document states that CVM Instruction No. 555 "authorizes indirect investment in crypto assets, for example through the acquisition of shares of funds and derivatives, among other assets traded in third jurisdictions, provided they are admitted and regulated in those markets."

The recommendation of the municipality is that the investments are made through trading platforms (exchanges) subject to the supervision of regulatory agencies, aiming to curb illegal practices such as money laundering. However, the letter points out that there is no explicit prohibition on investments made in any other way.

"Thus, it is important that the manager takes steps to minimize the risk of fomenting the offer of a fraudulent crypto, with the verification of the relevant variables associated with the issuance, management, governance and other characteristics of the crypto active," says the CVM in the document.