Regulatory Alerts2024-04-24 | 4056Qualified Investors
The Superintendency of the Financial System and the National Commission for Digital Assets (CNAD) define Qualified Investors to include authorized financial institutions and digital asset service providers holding at least US$ 500,000 in investable assets. Private digital asset offerings are restricted exclusively to these Qualified Investors, who must meet specific asset or net worth thresholds, and are prohibited from being sold to the general public. This regulation ensures that high-risk digital asset transactions are limited to entities and individuals with sufficient financial capacity to bear potential losses.
Qualified Investors:
A qualified investor is understood to be all institutions authorized and registered with the Superintendency of the Financial System, including international banks registered with the Central Reserve Bank, as well as any autonomous institution, issuer of public offers of digital assets, provider of digital asset services, and certifiers duly registered in the respective registry of the CNAD, provided that all the aforementioned possess at least five hundred thousand United States dollars (US$ 500,000) in investable assets, excluding the value of their main domicile.
Additionally, any investor, whether a natural or legal person, shall be considered qualified when meeting at least one of the following conditions:
a) Possess at least five hundred thousand United States dollars (US$ 500,000) in investable assets, excluding the value of their residence or main domicile; b) Be an entity created specifically to acquire the securities in the private offering, and which has a net worth superior to five hundred thousand United States dollars (US$ 500,000), which may be verifiable with the equity of the shareholders.
Digital assets from private offerings may only be commercialized among Qualified Investors, and it is prohibited to sell them in a public offering.