Brazilian Securities Regulator CVM Launches Inquiry into Tokenization Companies
In a move to gain deeper insights into the tokenization market, the Brazilian Securities Regulator (CVM) has initiated an inquiry into the operations of tokenization companies. It has reportedly sent letters to these companies, requesting information about the tokens they have issued and the assets that back them.
The CVM is specifically seeking details on the number of tokenization operations conducted by each company, the names of the assets supporting these operations, and the classification of the tokens issued (such as utility tokens, payments tokens, or securities). Some of the companies that received these letters include Liqi, Peerbr, and Hurst Capital.
Though the CVM has categorized this inquiry as part of its regular market mapping exercise, some tokenization providers are concerned that it might lead to self-incrimination. These companies are being asked to disclose their tokenization activities starting from January 2023.
However, not all tokenization companies in Brazil have received these letters. Tokeniza and Foxbit, for instance, have reportedly not been included in the investigative process.
The CVM has clarified that its objective is to understand the roles and activities of these companies, particularly those involved in security tokens. It believes that communicating with such institutions falls under its thematic supervision responsibilities.
While this inquiry has raised concerns among tokenization service providers, as it deviates from the usual procedures, the CVM maintains that it is a necessary step to gather relevant information about the market.