Brazil’s Securities Regulator Plans to Pilot a Sandbox for Tokenization Next Year

The Brazilian Securities and Exchange Commission (CVM) is preparing to launch a second regulatory sandbox program in 2024.

During the Rio Innovation Week event on October 4, Daniel Maeda, the superintendent of institutional investor supervision at the CVM, shared that the regulator plans to explore the use of tokenization through this sandbox.

This decision was prompted by the success of their first sandbox program, which involved tokenizing approximately $36 million in assets.

Maeda stated that the goal of the program is to allow for innovation without prior limitations, therefore specific use cases for tokenization have not yet been defined. However, he noted that areas such as agribusiness and Environmental, Social, and Governance (ESG) are of interest to the regulator.

The superintendent also mentioned that the CVM is waiting for related changes to be implemented in Brazil’s crypto market, including those for the country’s central bank digital currency, the Drex.

He emphasized the importance of considering developments in the digital asset space and observing how other countries have regulated them.