Comissão de Valores Mobiliários (CVM) in Brazil plans to start a second regulatory pilot program in 2024.
Speaking at Rio Innovation Week on October 4, Daniel Maeda, supervisor of institutional investor oversight at CVM, said the regulator will explore a regulatory sandbox for tokenization use cases likely to begin in 2024. According to Maeda, the regulator’s efforts The launch of the second sandbox came after positive experiences in tokenizing approximately $36 million in assets.
“We do not define specific cases, because we want to allow innovation to reach the CVM mechanism, without prior restrictions,” Maeda told Cointelegraph Brazil. “But some coding application areas definitely catch our attention, such as agribusiness [Environmental, Social, and Governance]”.
The supervisor added that CVM planned to wait for the implementation of changes related to Brazil’s cryptocurrency market including those for the country’s central bank digital currency, Drex. According to Maeda, both the securities regulator and the central bank should consider developments in the digital asset space as well as how other countries approach regulation.
“I have great respect for,” Maeda said[هيئة الأوراق المالية والبورصة الأمريكية]“And I don’t think it’s up to me to point to their position as right or wrong.” “What I can say is that we, at CVM, have seen many benefits in this market to leverage operations. Through tokenization, the investor gains transparency and lower costs, as well as increased democratization of investments, which are the values that the commission carries.[UnitedStatesSEC}andIdon’tthinkit’suptometopointouttheirstanceasrightorwrong”saidMaeda“WhatIcansayisthatweatCVMsawmanybenefitsinthismarkettoleverageprocessesThroughtokenizationtheinvestorgainsintransparencyandlowercostsinadditiontoincreasingthedemocratizationofinvestmentswhicharevaluesthatthecommissioncarries”[UnitedStatesSEC}andIdon’tthinkit’suptometopointouttheirstanceasrightorwrong”saidMaeda“WhatIcansayisthatweatCVMsawmanybenefitsinthismarkettoleverageprocessesThroughtokenizationtheinvestorgainsintransparencyandlowercostsinadditiontoincreasingthedemocratizationofinvestmentswhicharevaluesthatthecommissioncarries”
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Brazil’s central bank announced tighter regulations in October amid a significant increase in cryptocurrency adoption in the country. Governor Campos Neto specifically pointed to the links between the use of cryptocurrencies and tax evasion or illicit activities.
Brazilian President Luiz Inacio Lula da Silva signed a framework into law in June outlining the different roles the country’s central bank and securities commission will play in regulating digital assets. In November, Brazil plans to roll out a program to issue identity documents through a private blockchain as part of efforts to protect personal data and prevent fraud.
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