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Brazilian regulator plans sandbox for tokenization in 2024

source-logo  news.coincu.com 10 October 2023 11:28, UTC

Brazilian Regulator Plans Sandbox Program

During the Rio Innovation Week event held on October 4, Daniel Maeda, the Superintendent of Institutional Investor Supervision at Brazil’s Comissão de Valores Mobiliários (CVM), revealed the Brazilian Regulator Plans Sandbox Program is expected to begin in 2024. This move is part of CVM’s proactive stance in exploring the potential applications of tokenization.

Mr. Maeda highlighted the success of their initial sandbox experience, which involved the tokenization of approximately $36 million in assets. Building on this positive track record, the CVM is eager to delve deeper into the realm of tokenization. However, the CVM is not rushing into this endeavor. Maeda emphasized that they intend to await necessary regulatory changes related to Brazil’s burgeoning crypto market, including developments related to the country’s central bank digital currency, known as the Drex.

Brazil’s Commitment to Responsible and Effective Digital Asset Regulation

Brazil’s central bank has already taken steps to strengthen crypto regulations, particularly in response to the surging adoption of cryptocurrencies in the country. Governor Campos Neto has explicitly raised concerns about the potential misuse of cryptocurrencies for tax evasion and illicit activities.

Furthermore, Brazil has established a clear framework, signed into law by President Luiz Inácio Lula da Silva in June, delineating the roles of the central bank and the CVM in the regulation of digital assets. As part of ongoing efforts to safeguard personal data and combat fraud, Brazil is set to launch a program in November that issues identification documents using a private blockchain.

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