The Brazilian Securities and Exchange Commission (CVM) has announced plans to launch a new version of its tokenization sandbox next year. Currently, several companies are participating in the regulatory sandbox that was launched in 2021 and began operating with public offerings in May 2022.
According to Daniel Maeda, the Superintendent of Institutional Investor Supervision at CVM, the focus of this new version of the regulatory sandbox will be solely on tokenization, particularly in sectors such as ESG and Agro.
Maeda also emphasized that tokenization is a multilateral issue, considering the proposals of the Central Bank with Drex, and that the regulatory body is very interested in the innovations that the private sector has to offer.
“We haven’t defined specific cases because we want to allow innovation to reach CVM without prior limitations. But some areas for tokenization application definitely catch our attention, such as agro and ESG,” said Maeda, according to a report from Cointelegraph Brazil.
The regulatory body has not yet set a date for the launch of this new edition of the sandbox, but the announcement is expected to be published in the first semester.
Although it took a strict stance on the ICO market in 2017, CVM has been advocating for the benefits of tokenization and the integration of cryptocurrencies with the traditional financial market.
Recently, the president of CVM, João Pedro Nascimento, reiterated that the crypto asset market is not a problem for the regulator, but rather an ally. Nascimento pointed out that the crypto sector still faces prejudice because it is still involved in controversies.
“Cryptocurrencies are not enemies of the capital market,” he said.
According to Nascimento, cryptocurrencies can attract a new profile of investor with innovative opportunities. He mentioned that digital assets are one of the four pillars of CVM’s activities, along with agribusiness, sustainable finance, and Soccer Anonymous Societies (SAFs).
Nascimento also highlighted, in his discussion of CVM’s proposed agenda, the tokenization of assets enabled by the technology of digital assets, namely blockchain.