Brazil’s regulator bans large pension funds from investing reserves in cryptocurrency

At the moment, reserves are usually placed in securities

01.04.2025 - 10:25

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What’s new? Brazil’s National Monetary Council (CMN) has banned closed-end pension funds (EFPC) from placing any part of their guarantee reserves in cryptocurrencies due to their special investment characteristics and associated risks.

Material by Poder360

What else is known? The regulation does not apply to open-ended pension funds or separate pension products sold by banks and insurance companies. They are regulated separately and can place indirect investments through exchange-traded funds (ETFs) or tokenized asset platforms.

EFPCs are large funds; they manage the retirement savings of tens of thousands of union members and other workers, and their reserves typically consist of bonds and equities.

Guarantee reserves of pension funds are assets intended to finance social security benefits payment to clients.

Meanwhile, a bill was introduced in Brazil’s Parliament last month to allow local funds to directly purchase cryptocurrencies to stimulate domestic competition and develop more comprehensive financial products.

UK pension fund directly invests $65 million in BTC

The fund allocated 3% of the total assets under management to the purchase of the first cryptocurrency

Last month, the European Insurance and Pensions Authority (EIOPA) proposed requiring insurance firms to hold 100% reserves for clients’ crypto assets to mitigate risks.

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