Cryptocurrencies suffered yet another jolt after Brazil banned funds from investing in them. The decision that comes due to concerns about the legality of cryptocurrency based transactions puts a question mark over their future.
As per a report by Reuters, Comissão de Valores Mobiliários (CVM), the South American nation’s market regulator stated that the cryptocurrencies cannot be considered as financial assets and hence placed legal restrictions against the use of funds.
“The interpretation of this technical division is that cryptocurrencies cannot be qualified financial assets … and for this reason this their direct acquisition by investment funds … is not permitted,” stated a CVM circular that was quoted in the report.