This article is adapted from CoinDesk Brasil, a partnership between CoinDesk and InfoMoney, one of Brazil's leading financial news publications. Follow CoinDesk Brasil on Twitter.
The Brazilian Securities and Exchange Commission (CVM) on Friday approved the ability for investment funds to include crypto assets among their holdings.
In a statement, the regulator explained that the decision seeks to allow funds to operate in the crypto segment while paying attention to controls related to the integrity and ownership of the assets.
In order to be part of fund portfolios, the CVM said crypto assets will have to follow a set of criteria in line with a new regulatory framework established in a law enacted by the outgoing president, Jair Bolsonaro, on Thursday.
Crypto assets may be part of a fund as long as they are traded in entities authorized by either the Central Bank of Brazil or the CVM, or – in the case of operations abroad – by a local supervisor, the new rule detailed.
This article was translated by Andrés Engler and edited by CoinDesk. The original Portuguese article can be found here.