Brazilian Financial Authority Bans Major Pension Fund from Investing in Crypto

At a meeting on March 27, Brazil's highest monetary policy body, the National Monetary Council (CMN), approved a resolution banning some pension funds from investing in cryptocurrencies. According to the resolution published by CMN, pension funds called Closed Complementary Pension Entities (EFPCs) will be prohibited from investing guaranteed reserves in crypto assets such as Bitcoin (BTC) due to excessive risk.

Closed Complementary Pension Entities (EFPCs) are an important pillar of Brazil's corporate pension system, managing private pension plans mainly for employees of large companies and public institutions. According to the Brazilian Pension Supervisory Agency (PREVIC), EFPCs manage about 30,000 pensions in the country...