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Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC] can now be ‘purchased’ by Brazilian investment funds

Febin Jose



Bitcoin [BTC], Ethereum [ETH] and Litecoin [ITC] can now be 'bought' by investment funds in Brazil
Source: Unsplash

In a much-anticipated move, Brazil’s securities regulator, Comissão de Valores Mobiliários [CVM] authorized indirect investment in cryptocurrencies through foreign funds and acquisition of derivatives. The circular ‘guidelines to investment fund managers’ states that investments funds can invest in “other assets” traded in other jurisdictions if they are regulated in those markets.

This effectively means that investment firms can now buy a share in foreign funds, mostly in cryptocurrency portfolios, including Bitcoin [BTC], Ethereum [ETH] and Litecoin [LTC].

The circular released by Brazil’s Ministry of Finance also warned investors of illegal operations in the space. It warns them of frauds, money laundering and other illicit activities, and advocates investment in cryptocurrencies through regulated exchanges.

It stated:

“We call attention to money laundering, unfair practices, conducting fraudulent operations or manipulating prices, among others. An adequate way to address such concerns is investment through exchanges that are subject to oversight by regulators with these concerns.”

Daniel Maeda, Superintendent of Institutional Investor Relations at the CVM, in a previous circular, made it clear that firms cannot directly invest in cryptocurrencies, stating that “they are not financial assets”.

Though the report has its set of guidelines, there are no restrictions on which platform an investor can use to purchase cryptocurrencies, provided they meet the regulatory and legal requirements.

The ministry of finance goes on to warn investors to not fall prey to fraudulent ICOs while purchasing cryptocurrencies and advises them to use a six-factor system to check for scams. The key point in the precaution list is the verification of the cryptocurrency technology, ensuring that it is “transparent, accessible, and verifiable by any user.”

The government also asked investors to check whether the base software is open-source and free, and to check whether the arrangements made could lead to a difference in opinions, conflict of interests, or the concentration of excessive powers on the issuer/promoter of the cryptoassets. The use of aggressive sales techniques, the trading liquidity of the cryptoasset, and the nature of its network and validation protocols, and the software used were also warned against.

The profile of the team of developers, as well as their degree of involvement with the project was a point that was emphasized upon by the circular.

In addition, the government agency has raised concern over the pricing of cryptocurrencies, stating that there is no internationally accepted model for calculating a fair price for the investment.

The Ministry of Finance stated:

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

Considered a growing cryptocurrency market, Brazil’s market grew from almost non-existent to worth over $2.5B in 2017. The new move is considered by many enthusiasts as a big step towards global acceptance of cryptocurrencies.

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Febin Jose is a full-time journalist/editor at AMBCrypto. He believes that cryptocurrencies will navigate a volatile future and that Arsenal can still win a title. Lives around the "if it sounds like writing, I rewrite it" mantra.


Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market




Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.

In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.

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