Brazil’s National Monetary Council Prohibits Pension Funds from Crypto Investments

Brazil's National Monetary Council (CMN) has banned closed pension funds, known as EFPCs, from investing in cryptocurrencies. Key points include:

• The ban targets investments in digital currencies like bitcoin.
• EFPCs manage retirement savings for employees and typically invest in bonds and equities.
• The resolution cites the high risk associated with virtual assets.
• This ruling is outlined in Resolution 5.202/2025.
• In contrast, some regions, such as the UK and parts of the U.S., are exploring crypto allocations for pension funds.
• The ruling does not affect open pension funds or individual retirement products, which may allow indirect crypto investments.