The Brazilian Securities and Exchange Commission (CVM) plans to implement a second regulatory sandbox program to foster asset tokenization in the country by 2024.
Daniel Maeda, the superintendent of the institutional investment oversight department at CVM, announced this during the Rio Innovation Week event. According to him, within this regulatory sandbox, the regulator will analyze various scenarios of asset tokenization. This is the second launch of such a sandbox, following the successful completion of a similar pilot project worth $36 million.
Maeda emphasized that the regulator will not impose strict restrictions on when and under what circumstances asset tokenization can take place. He underscored the importance of introducing innovations without prior constraints but expressed interest in tokenization in areas such as agribusiness, ecology, social services, and governance.
CVM plans to wait for changes in Brazil's legislation, especially regarding the central bank's digital currency, before regulating tokenization. Maeda noted that the regulator must consider the development of the crypto industry and study the approaches of other countries.
The superintendent also expressed respect for the U.S. Securities and Exchange Commission (SEC), stating that transparency, cost reduction, and democratization of investments are the main advantages of tokenization. Last year, Brazil's largest bank, Itaú Unibanco, involved in developing the digital real, expressed readiness to provide tokenization services to its clients. Some legislators have also proposed tokenizing gold using blockchain to combat illegal mining and trading of this precious metal.