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Brazilian Regulators Allow Investment Funds to Invest Money in Bitcoin

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Brazil’s investment fund regulator dubbed Comissão de Valores Mobiliários (CVM) has allegedly legalized investment funds to invest their money into the cryptosphere through acquiring the share of funds and derivatives.

Investors with a portfolio of digital assets such as Bitcoin, Litecoin, and Ethereum could purchase a share in the foreign funds. The funds would take a commission to operate the transaction just like a stock fund.

Brazil Proceeds with prudence

According to a report conducted officially by the Finance Ministry of Brazil (FMB), the news was first covered by a local media outlet called Portal do Bitcoin which addressed; funds will also be able to invest in assets traded in other jurisdictions as far the regulation in the market permits its trading.

The document issued by the Ministry of Finance reveals that there’s a scope for illegal activities such as money laundering. Therefore, these funds should be poured into the digital assets through a regulated exchange. The report adds the investment should be made in the administration of regulatory agencies that can control such illicit practices. Nonetheless, there’s no restriction on making investments in another way as far the regulatory and legal necessities are met.

Subsequently, the circular further claims that funds must take safety measures before buying a specific cryptocurrency to stay away from purchasing digital tokens issued by fake Initial Coin offerings (ICOs).

Moreover, the report points at six safety measures including checking the trading liquidity of a cryptocurrency, verifying the liquidity of a token and identifying the technology whether it is accessible, transparent, and identifiable by a user. In addition, the funds should ensure whether the software is open source and free.

Surprisingly, it also addresses that investments must verify the management of hostile sales method or check whether the arrangements bring divergence of interest and concentration of additional commands on the promoter or issuer of the digital asset.

That all being said, Brazilian regulatory agency raised a point of concern regarding the right pricing of each crypto asset, the document of Brazilian Finance Ministry reads:

“One possible parameter, in this sense, is the investment in crypto assets that contain the permanent disclosure of globally recognized price indices prepared by independent third parties.”

In the previous research conducted by the finance ministry, Daniel Maeda the chief of institutional investor relations at CVM stated, investment funds don’t have the authority to put the money in digital assets directly. According to CVM, investments funds that invest in cryptosphere will have to first clear that how they will move towards airdrops and hard forks.

Brazil has been continuously supporting the crypto industry, and it has come up with some impressive figures regarding market growth. The market of Brazil grew nearly from nothing to worth more than 2.5 billion USD last year.

Consequently, many crypto enthusiasts are considering this move as a significant step towards the worldwide acceptance of cryptocurrencies.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Pixabay.

Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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