There is no longer any doubt about the strategic importance and popularization of tokenization – facts that are empowering this innovative way of doing business in all economies. But is the regulation of tokenization already a reality in Brazil?
Although there is no specific legislation regulating activities with tokens, as a law for cryptocurrencies was enacted, initiatives to form a trustworthy environment for investors in tokens are many.
And with an advantage: there is no limit for using tokens in the economy.
They can increase revenue, attract and retain customers, improve business liquidity and investment yields, and optimize production chains.
But as an investor, you must ask yourself: is Brazilian legislation being improved to give more security and credibility to a tokenized economy?
BLOCKBR, a native web 3.0 company, will talk about what has been happening to regulate tokenization in Brazil!
DOES CRYPTOCURRENCY LAW FAVOR TOKENS?
Absolutely, yes!
The regulation of cryptocurrencies sanctioned at the end of 2022 brings a great benefit to the cryptomarket, as it reinforces the regulation of exchanges – digital currency brokers – and creates a legal framework against financial crimes committed with cryptocurrencies.
The image of business tokens will benefit even more, as they are blockchain products that do not have the exposure of digital currencies to speculative attacks and their values are linked to the assets that the tokens represent.
IS THERE A REGULATION ON TOKENIZATION IN BRAZIL?
In Brazil, there is still no regulation of activities with tokens. However, there are several government initiatives that are already moving in that direction. We can say that regulating tokenization is no longer a question of if it will happen, but when.
SO ARE TOKEN OPERATIONS ILLEGAL?
No!
To be clearer, we need to understand legality and regulation – the first deals with the right to carry out an activity that does not go against any law or people’s rights. The second is the creation of control and inspection mechanisms for the activity.
A good example is the unregulated professions and believe me: nannies, podiatrists and cooks are not regulated professions in Brazil!
This vacuum (which is not one of legality) is caused by the difference between the speed of emergence of new professions and business models and the responses of the powers responsible for regulation.
Tokenization is legally supported by the Civil Code and is currently treated as a crowdfunding operation – which shows how important it is for regulation to exist.
It is necessary to clarify the understanding of negotiable tokens and, mainly, who are the agents in this market – in particular, the business tokenization companies such as BLOCKBR.
Operations with tokens can be freely created, always respecting the legal limit of the asset to be tokenized, as with security tokens, which are digital versions of securities controlled by the CVM, and real estate tokenization, which has specific legislation.
Fixed income investments and variable income: see the differences!
TOKENIZATION IN THE WORLD
Small investors receiving fractions of real estate rent, people profiting from the remuneration of receivables, fans celebrating their profits from the sale of the team’s star.
What do these situations have in common?
The token, the digital asset without which these possibilities would certainly not exist for people with little capital to invest and are already routine facts in many places in the world, including Brazil.
The tokenized economy is breaking barriers and proving that blockchain security, agility and offer fractionation can boost businesses of all types.
There is a prediction that the tokenization market will reach almost $14 billion by 2030, at an annual growth rate of 24%.
The industrial component industries are the biggest share of this growth and for a reason that may surprise: tokenizing industrial secrets, demonstrating that tokens go beyond sales and investments.
The creation of tokenized national currencies, which is underway in several countries, such as the digital real in Brazil, is an extremely important step towards the credibility of tokens and the expansion of their use.
THE CENTRAL BANK, CVM AND TOKENIZATION
The CVM and the Central Bank have been developing actions to build the legal and systemic infrastructure that gives companies and investors of all sizes the confidence to develop tokenized businesses.
REGULATORY SANDBOX FOR TOKENS
The regulatory sandbox is an experimental environment created and managed by the CVM (Comissão de Valores Mobiliários) for companies from different areas of interest to develop technologically innovative projects for the capital market.
The big differential is the waiver of regulatory requirements to encourage projects. In 2019, the CVM authorized the development of projects with tokens for securities, digital bookkeeping and other purposes.
Projects are closely monitored by the agency for two years to assess results, and developers are free from legal restrictions during this period.
TOKENIZATION STUDY GROUP
BACEN created, in December 2022, the GTI Tokenização, an interdepartmental study group on registration, custody, trading and settlement activities of financial assets in blockchain environments.
It is a group with an advisory profile that aims to propose recommendations and analyze the changes compared to the international reality, understand the level of security of tokenization, the gains for the SFN (national financial system) and the possible risks.
It is understood that the GTI should be the great promoter of the regulation of business tokens, as it will have the task of addressing everything that involves cryptoassets and a consistent knowledge base to validate the regulation of tokenization.
DIGITAL REAL
The creation of the Brazilian digital currency is undoubtedly the biggest step towards the legal understanding of tokens in our economy.
The Brazilian CBDC (central bank digital currency) will be the real in digital assets that we will be able to keep in virtual wallets to use in online payments in Brazil and abroad and in person through applications, without intermediation costs.
The real digital project is in the development and testing phase and expects to start using it in mid-2024.
Learn more about the Central Bank’s digital real!
INVEST AND PROFIT MORE WITH TOKENS ON BLOCKBR!
Do you think buying token is complicated? Believe me: applying to tokens is much simpler than you might think!
You will only need to open an account at an asset token broker like BLOCKBR and create a digital wallet to store your investments.
After that, access our token marketplace, learn about the many offers and choose those that align with your investor profile. You will find a variety of assets and possibilities for big gains and you can start investing in tokens with 50 reais!
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 ?
