CVM’s newest regulation for the fixed income tokenization market has caused a lot of discussion in the market among tokenization companies, token investors and issuers.
Ofício Circular 04/23 is an opinion from the body attesting that the tokenized receivable is a crypto asset that must be categorized as a security and fall under CVM rules regarding issuance, custody and other aspects.
Receivables tokens are fixed income securities with yields of up to 1.5% per month, being a great alternative for investors of all profiles, especially conservative ones, due to the low risk and predictable gain.
The focus of the fixed income token is the digitization of companies’ credit rights to trade them through a token marketplace, in an operation similar to the anticipation of receivables made in banks.
For companies, the main advantage of token receivables is paying a fee above traditional fixed income products, but lower than the discount charged by banks.
What will be the consequences of this new opinion?
BLOCKBR, a native web 3.0 company, will show how the new CVM regulation can impact fixed income tokens!
WHAT IS CONSIDERED A SECURITY
Securities are financial securities of credit or property issued by private or public entities, offered in the capital market and which generate rights of remuneration or participation in the activity of the issuers of the securities.
These are securities that operate under CVM regulation.
The main Brazilian securities assets are shares, debentures, BDR (purchase of shares in foreign companies) and shares of investment funds in securities.
The tokenization of assets already operates in the securities sector through security tokens or security tokens.
DOES THE NEW CVM RULE MAKE FIXED INCOME TOKENS ILLEGAL?
Not.
With each discussion about cryptocurrencies and investment and business tokens in Brazil – which have been many and positive – the question of legality is raised, perhaps due to society’s memory of crimes with traditional financial assets – and fully legalized, it should be said.
However, the discussion about the legality of the tokens is positively overcome.
The best indication is the CVM’s authorization in 2019 for the creation of a regulatory sandbox for projects with tokens.
These and other deliberations about tokens indicate that the legal aspect is no longer an issue for the Brazilian State.
NEW CVM REGULATORY RULE FOR TOKENS
In a general line, the new CVM opinion understands that receivables anticipation tokens should be equated with securities and, therefore, subject to the rules for offering and trading these securities in the capital market.
According to the CVM securitization superintendent, Bruno Gomes, receivables prepayment tokens are being offered more and more on platforms, exchanges or tokenizers, with the investment appeal, being fundamental the guidance of the technical area on the subject.
This decision radically changes the way fixed income tokens can be traded, since as a security, a tokenized receivable must comply with the rules on public offerings and on the registration of issuers and provisions on:
- Register of issuers;
- Intermediation;
- Bookkeeping;
- Custody;
- Centralized deposit;
- Record;
- Compensation;
- Sale off.
The CVM recommends, as an alternative, that asset tokenization companies make credit rights token projects through the crowdfunding license, which are limited to operations of R$ 15 million, or the securitized tokens model (security tokens) for larger projects.
WHAT IS THE IMPACT OF THE DECISION ON THE TOKENIZATION MARKET
If negotiated from the perspective of the securitization process, regulated by the CVM, the offering process will become very time-consuming, which goes against one of the successful differentials of tokens – how agile an offering can be.
Another negative fact is that the receivable token cannot be traded on the secondary market – the business ecosystem for initial investors who want to sell tokens to third parties – another attractive factor of tokenization.
Finally, obtaining the crowdfunding license for offerings of up to R$15 million is a time-consuming and costly process.
These aspects have led tokenizers to suspend operations with fixed income tokens until the topic is discussed in more depth between companies in the sector and the regulatory body.
According to the CEO of ABCripto (Brazilian Association of Cryptoeconomics), Bernardo Srur, the CVM’s position is positive on one point, that rule brings greater legal certainty, including for investments in Brazil regarding tokenization.
However, it is a consensus among cryptomarket companies that there should be greater dialogue between the parties to:
- Ensure broad knowledge of the technical area of the CVM on the specificities of the digital asset;
- Establish a transition period for companies to adapt to the rules that are validated after the rounds of conversations.
Several meetings have already started between representatives of tokenization companies and the CVM to discuss these topics.
The tokenization market sees the discussion and developments that this subject has been raising as positive, as it demonstrates the concern in understanding something so new and transformative for business and economies as a whole.
Certainly, one of the results of this dialogue will be to promote more transparency and security for issuers, tokenizers and token investors.
INVEST AND EARN MORE WITH TOKENS ON BLOCKBR!
Buying token is not complicated if you invest with someone who makes it easy! Just open an account at a qualified asset tokenization company like BLOCKBR and create a digital wallet to store your applications.
You can invest in tokens of different profiles – real and financial assets, rights, investment products and business projects.
Access our token marketplace, learn about the most varied offers and choose the ones that align with your investor profile!
TOKENIZE YOUR ASSETS WITH BLOCKBR!
Tokenization is a reality that is embracing all segments and business formats, whether in direct negotiation or as a strategic marketing tool. There is no industry that cannot benefit from tokens.
Several recent actions by BACEN and other bodies contribute to the greater credibility of tokenization and companies in the sector. The digital real will be a great divider to increase the security of those who want to invest in digital assets.
Transforming assets into tokens and offering them on the market are simpler tasks than they seem. Just get to know the work with the token project at BLOCKBR.
You don’t want to see the competition get ahead. So come talk to BLOCKBR.
We have the best token offering strategy on the market!
BLOCKBR Digital Assets is a native fintech web 3.0 that brings technological innovation and digital knowledge to transform physical assets into digital ones, in the tokenization process.
The supply of tokenized assets is democratic and decentralized, which makes the way of investing safe, simpler and more efficient.
We enable, structure, issue and offer tokens on our platform and beyond. Be aware that tokens depend on feasibility and regulatory factors.
Do you want to tokenize your business or part of it? Do you have a business solution and does it make sense to issue your own token ?
