CVM addresses regulatory enforcement and tokenization rules

The Brazilian Securities and Exchange Commission (CVM) is addressing regulatory boundaries and modernization within the capital markets.

A recent administrative sanctioning process highlighted that certain regulatory rules cannot be bypassed through mutual consent between parties. The case involved an investment advisor who used client credentials and separate devices to simulate investor orders and hide over R$3 million in losses through false reports between 2016 and 2024. The resulting penalties included professional bans, fines, and referrals to the Federal Public Ministry and Federal Police.

Separately, the CVM is exploring regulatory changes to facilitate asset tokenization. Antonio Berwanger, CVM Director of Market Development, stated that the commission is studying the possibility of waiving the requirement for a fiduciary agent in tokenization operations. This move aims to streamline processes under crowdfunding rules, where securitizers often hold dual positions, potentially making the traditional fiduciary agent role redundant in certain blockchain-based financial product offerings.