BRASILIA, Jan. 12 (Xinhua) -- Brazil's Securities and Exchange Commission (CVM) on Friday instructed investment fund managers not to invest in bitcoin or other crypto currencies.

The CVM issued guidelines saying the jury was still out on the validity of the virtual currency, leading it to ban investments.

"The legal and economic nature of this type of investment has been debated in Brazil and other countries, and no conclusions have been reached," particularly by the markets and regulatory agencies, Daniel Maeda, head of corporate and investor relations at the CVM, said.

With that in mind, the CVM "informs investment fund managers that crypto currencies cannot be classified as financial assets... that's why the direct acquisition of these virtual monies by regulated investment funds is not allowed," Maeda said.

The guidelines also "warn of the risks associated with internet transactions, such as security and particularities of ownership."

Brazil joins other countries in taking a cautious approach to the rise in crypto currency transactions.