Brazilian Regulator: Cryptocurrency is Not a Financial Asset
- Bitcoin is popular in Brazil, but government cracks down.

Brazilian investment funds are now effectively prohibited from buying cryptocurrency.
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The Securities and Exchange Commission of Brazil (CVM) announced on Friday that digital currency cannot be considered a financial asset, and direct investment is thus not allowed. A fund looking to invest via foreign funds "should await further clarification", according to Reuters.
A commission was set up by the government in May 2017 to discuss regulation of cryptocurrency in the country, and seven public hearings were held since then, during which experts spoke to politicians on the subject. The last was held in December, and the final decision made by Federal Deputy Expedito Netto was not positive: "We have decided to position ourselves by the prohibition of issuance in national territory, as well as to prevent its commercialization, intermediation and even acceptance as a means of payments for settlement of obligations in the Country."
Writing in Valuewalk, Brazilian author and Youtube star Raphaël Lima laments: "Brazil needs Bitcoin...According to a study by Credit Suisse, Brazil’s productivity has not risen since 1981, and it’s not going to rise if the government keeps banning everything that can make us more productive."
Brazil is a big market for Bitcoin, with some reporting that it is the fourth largest market by volume (infomoney.com.br).
Two Brazilians (one government adviser and one Ethereum programmer) have proposed an idea to integrate Ethereum into the country's legislative process, according to Quartz. In a country with 26 political parties in congress and 145 million voters, collecting and validating signatures for petitions can be a challenging process. An application designed on the Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term aims to streamline this process, and thus make it more likely that petitions will be heard in parliament.
Brazilian investment funds are now effectively prohibited from buying cryptocurrency.
Discover credible partners and premium clients at China’s leading finance event!
The Securities and Exchange Commission of Brazil (CVM) announced on Friday that digital currency cannot be considered a financial asset, and direct investment is thus not allowed. A fund looking to invest via foreign funds "should await further clarification", according to Reuters.
A commission was set up by the government in May 2017 to discuss regulation of cryptocurrency in the country, and seven public hearings were held since then, during which experts spoke to politicians on the subject. The last was held in December, and the final decision made by Federal Deputy Expedito Netto was not positive: "We have decided to position ourselves by the prohibition of issuance in national territory, as well as to prevent its commercialization, intermediation and even acceptance as a means of payments for settlement of obligations in the Country."
Writing in Valuewalk, Brazilian author and Youtube star Raphaël Lima laments: "Brazil needs Bitcoin...According to a study by Credit Suisse, Brazil’s productivity has not risen since 1981, and it’s not going to rise if the government keeps banning everything that can make us more productive."
Brazil is a big market for Bitcoin, with some reporting that it is the fourth largest market by volume (infomoney.com.br).
Two Brazilians (one government adviser and one Ethereum programmer) have proposed an idea to integrate Ethereum into the country's legislative process, according to Quartz. In a country with 26 political parties in congress and 145 million voters, collecting and validating signatures for petitions can be a challenging process. An application designed on the Ethereum Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamper with. The Evolution of BlockchainBlockchain was originally invented by an individual or group of people under the name of Satoshi Nakamoto in 2008. The purpose of blockchain was originally to serve as the public transaction ledger of Bitcoin, the world’s first cryptocurrency.In particular, bundles of transaction data, called “blocks”, are added to the ledger in a chronological fashion, forming a “chain.” These blocks include things like date, time, dollar amount, and (in some cases) the public addresses of the sender and the receiver.The computers responsible for upholding a blockchain network are called “nodes.” These nodes carry out the duties necessary to confirm the transactions and add them to the ledger. In exchange for their work, the nodes receive rewards in the form of crypto tokens.By storing data via a peer-to-peer network (P2P), blockchain controls for a wide range of risks that are traditionally inherent with data being held centrally.Of note, P2P blockchain networks lack centralized points of vulnerability. Consequently, hackers cannot exploit these networks via normalized means nor does the network possess a central failure point.In order to hack or alter a blockchain’s ledger, more than half of the nodes must be compromised. Looking ahead, blockchain technology is an area of extensive research across multiple industries, including financial services and payments, among others. Read this Term aims to streamline this process, and thus make it more likely that petitions will be heard in parliament.