Brazil CVM regulatory and tokenization initiatives

The Brazilian Securities and Exchange Commission (CVM) is advancing regulatory enforcement and technological modernization, specifically regarding asset tokenization and market supervision.

Enforcement efforts recently addressed a case where an investment advisor used false reports to hide over R$3 million in losses between 2016 and 2024. The CVM clarified that regulatory rules cannot be bypassed through mutual consent between parties, resulting in professional bans and referrals to the Federal Police.

To facilitate tokenization, CVM Director of Market Development Antonio Berwanger noted the commission is studying the possibility of waiving fiduciary agent requirements in certain blockchain-based operations to streamline processes under crowdfunding rules. This international regulatory agenda was a key focus during a mission to Washington, D.C., where CVM President Otto Lobo and Superintendent José Alexandre Vasco met with the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC) to discuss technical cooperation and technological modernization.

Looking forward, President Otto Eduardo Lobo announced plans to launch an artificial intelligence-based market supervision system within the next three months. This system is intended to provide 24/7 continuous analysis of all companies. To support this, the CVM will migrate data to the cloud and is working on digital asset regulations, with a public hearing expected within 60 days. These initiatives, along with the hiring of 1,000 new employees, are being supported by industry associations such as Anbima, Abrasca, and Ancord following a Supreme Federal Court decision regarding market supervision fees.