Brazil has implemented a ban on certain pension funds from investing in cryptocurrencies due to the perceived risks involved. The National Monetary Council (CMN) has specifically prohibited closed pension entities, known as Entidades Fechadas de Previdência Complementar (EFPCs), from investing any of their guarantee reserves in Bitcoin (BTC) or other digital currencies.
Key Points:
- Brazil’s CMN has specifically prohibited these pension funds from incorporating cryptocurrencies into their reserves.
- This decision diverges from actions in the U.S., where some states have begun allowing limited exposure to cryptocurrencies in pension strategies.
- Thousands of workers relying on these regulated funds for their retirements are impacted by this ruling.
The EFPCs manage retirement savings for many unionized and company-employed workers, typically investing in safer assets like bonds and equities. The Finance Ministry noted that the resolution also prohibits investment in virtual assets due to their inherent risks, as detailed in a circulating notice.
This ruling was formalized in the Resolution 5.202/2025 by the CMN. In contrast, a U.K. pension fund received guidance last year from specialist firm Cartwright, successfully allocating 3% of its assets to Bitcoin. Additionally, several states in the U.S. are exploring cryptocurrency investments within their pension plans, with Wisconsin’s board recently revealing a significant investment in Bitcoin via a BlackRock ETF.
The new ruling primarily affects closed pension funds, while open pension plans and individual retirement products may still allow investments through exchange-traded funds or tokenized asset platforms.
