Crypto▲ Bullish
Brazil CVM Sets 60-Day Deadline for Tokenization Proposal
Brazil's CVM launched a 14-department working group to draft tokenized securities rules, with a first proposal due in 60 days. The group will review earlier sandbox results.
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Brazil's securities regulator formed a working group to draft rules for tokenized securities, with a first proposal due within 60 days. The Comissão de Valores Mobiliários (CVM) said the framework will cover registration, custody, trading and settlement of securities using distributed ledger technology.
The group brings together 14 CVM departments and may consult government agencies, market associations, self-regulatory bodies and outside specialists. It must send its initial proposal to the CVM board within 60 days of being formally installed. A broader review will run for 120 days, with a possible 30-day extension.
Brazil already applies securities law based on a token's economic characteristics. The CVM's 2022 guidance clarified that using blockchain does not change whether an asset qualifies as a security. The new review focuses on what happens around the asset.