Brazil Watchdog Prohibits Funds from Crypto Investing

Сountry’s regulators are currently working on crypto regulation
15 January 2018   530

The Securities and Exchange Commission of Brazil (CVM) said that local investment funds are prohibited from investing in cryptocurrencies. This is reported by Bitcoin.com.

The corresponding CVM directive is addressed to all employees and official agencies responsible for monitoring the activities of investment funds in the country. The document says that the crypto-currencies are not regarded by the regulator as financial assets, and therefore direct investment in them is prohibited.

Moreover, local funds wishing to invest in the cryptocurrency not directly but through foreign companies are advised not to rush into this and expect further statements by the regulator.

In May last year, the House of Representatives of the National Congress of Brazil created an ad hoc committee to regulate crypto-currencies. During the second half of last year, it held seven public hearings on issues related to digital assets.

In December 2017, CVM and the central bank of Brazil issued a joint statement, which deals with the risks associated with crypto-currencies. In the same month, the representative of the House of Representatives, Expedito Netto, proposed recommendations that, in effect, prohibit cryptotrading, storage, and exchange of digital currency for fiat without official authorization. As punishment to violators, the people's deputy recommended imprisonment for up to six months or a fine. At the same time, Netto did not specify what exactly such a "permit" should be like.

In addition, during the December public hearings, Jonathas Ramalho, Executive Director of Banco do Brasil, spoke in favor of regulating crypto-currency. In his opinion, the creation of rules for circulation of digital money in the country will help create an enabling environment for the development of the blockchain industry.

Bakkt to be Launched in December

It is also reported that Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure
19 October 2018   67

The expected launch of the Bakkt will take place on December 12 of this year. It is reported by The Block, citing informed sources.

Also, the material states that the investment bank Goldman Sachs does not plan to create custodial cryptocurrency solutions based on the Bakkt infrastructure. At the same time, the bank is considering the possibility of trading futures on a new platform.

In a recent Fortune interview with Bakkt, Kelly Lofler said that the cryptocurrency market is on the verge of a revolution comparable in size to the one that occurred on the energy market in the early 2000s.

Greater institutional participation in the digital asset markets requires secure and regulated custody solutions. We are impressed by BitGo’s product, unique services, and the management team. We view our investment in BitGo as an exciting opportunity to contribute to the evolution of this critical market infrastructure.
 

Rana Yared

Managing director, Goldman Sachs’ Principal Strategic Investments group

Bakkt is a cryptocurrency unit of the Intercontinental Exchange (ICE), which is the operator of the New York Stock Exchange. Giants such as Microsoft and Starbucks are taking part in creating of the new project, which is positioned as an “ecosystem for digital assets”.

The new platform will offer deliverable bitcoin futures to the market (unlike the settlement contracts for CBOE and CME, these are based on the underlying asset). The platform will support multiple fiat currencies.