The Brazilian Securities Commission (CVM) has initiated a series of inquiries directed at tokenization firms, seeking clarity on the specifics of their operations. Recent local reports indicate that these inquiries require issuers to provide details regarding the tokens they have issued, their intended classifications, and the underlying assets that support these token issuances.
**CVM Probes Tokenization Firms in Brazil**
The CVM, Brazil’s counterpart to the U.S. Securities and Exchange Commission, is reportedly investigating the realm of tokenization activities. According to various local sources, the commission has reached out to several companies that offer tokenization services to third parties, demanding information related to their operations and the specific types of tokens involved.
The inquiries include questions about the total number of tokenization transactions each company has conducted, the identities of the assets underpinning these transactions, and the classification of each token (such as utility tokens, payment tokens, or securities).
Reports from Valor Economico reveal that firms like Liqi, Peerbr, Hurst Capital, and two other unnamed tokenization companies have confirmed receipt of these letters. Conversely, companies like Tokeniza and Foxbit have not received such requests for information.
A source familiar with the situation disclosed that these inquiry letters have been sent to tokenization providers to assess their activities since January 2023. The insider commented, “Regulators indicate this is part of a market mapping exercise, but it has caused discomfort among tokenizers, as they may inadvertently be compiling evidence against themselves.”
The CVM has stated that its intention is to gain a clearer understanding of the roles and operations of companies that might be involved with security tokens. “Our outreach to institutions within the crypto ecosystem that may engage with securities is a component of our thematic supervision,” the commission explained.
However, the approach taken by the CVM could leave tokenization service providers feeling uneasy. Another source familiar with the issue remarked that this inquiry appears to be “somewhat outside the norm” given its nature.
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