Brazil’s Securities Regulator Plans to Create Tokenization Sandbox in 2024

金色财经 · 2023-10-10T04:03:06.000Z

Author: Turner Wright, Cointelegraph; Compiler: Songxue, Golden Finance The Brazilian Securities and Exchange Commission (CVM) plans to launch a second regulatory sandbox program in 2024. Speaking at Rio Innovation Week on October 4, Daniel Maeda, head of institutional investor regulation at the CVM, said the regulator will explore a regulatory sandbox for tokenization use cases, possibly starting in 2024. Maeda said the regulator decided to launch the second sandbox program after positive experiences with tokenizing approximately $36 million in assets. Maeda said: “We will not define specific use cases because we want to allow innovations to reach the Brazilian Securities and Exchange Commission without previous restrictions. But there are indeed some tokenization application areas that have attracted our attention, such as agriculture and environment, social and Governance (ESG) area.”

Author: Turner Wright, Cointelegraph; Translated by: Song Xue, Golden Finance
The Brazilian Securities and Exchange Commission (CVM) plans to launch its second regulatory sandbox program in 2024.
Speaking at Rio Innovation Week on Oct. 4, Daniel Maeda, head of institutional investor supervision at the CVM, said the regulator will explore a regulatory sandbox for tokenization use cases that could begin in 2024. Maeda said the regulator decided to launch a second sandbox program after a positive experience with tokenizing approximately $36 million in assets.
“We will not define specific use cases because we want to allow innovation to reach the Brazilian Securities and Exchange Commission without previous restrictions. However, there are indeed some areas of tokenization application that have caught our attention, such as agriculture and the environmental, social and governance (ESG) field,” Maeda said.
The regulator’s director also said that the CVM intends to wait for changes related to the Brazilian crypto market to be implemented, including those related to the country’s central bank digital currency, Drex. According to Maeda, both securities regulators and central banks should consider developments in the digital asset space and how other countries are handling regulation.
“I have a lot of respect for the [SEC], and I don’t think it’s my place to say whether their position is right or wrong,” Maeda said. “What I can say is that the CVM sees a lot of benefits in this market for leveraging the process. Through tokenization, investors can not only democratize investing, but also increase transparency and reduce costs, which are values ​​that the commission upholds.”
Brazil’s central bank announced tighter regulations in October as cryptocurrency adoption surged in the country. Governor Campos Neto specifically pointed out the link between cryptocurrency use and tax evasion or illegal activities.
Brazilian President Luiz Inácio Lula da Silva signed a legal framework in June that spells out the different roles of the country’s central bank and the CVM in regulating digital assets. In November, Brazil plans to launch a program to issue identity documents via a private blockchain as part of efforts to protect personal data and prevent fraud.