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What is CVM? Does it regulate tokens?

O que é CVM? Ela regulamenta os tokens?

What is CVM? Does it regulate tokens?

When we talk about securities that can be tokenized and offered through blockchains , the first question that arises for investors is: what is the role of the CVM in this new and revolutionary process?

The Securities and Exchange Commission is an entity that regulates, disciplines and supervises operations in the primary capital market – in company offers to potential investors – and secondary – between investors.

Currently, when we buy shares , investment fund shares and other financial products , it is mandatory that the process is carried out in accordance with CVM rules to preserve the rights and define the duties of financial institutions and investors.

The tokenization of financial products is a relatively new process with a growth path ahead, due to the agility and absolute security it provides.

On the other hand, the assets represented by tokens are regulated and supervised by the CVM. How can the entity contribute to the success of tokenized financial assets ?

In this article, BLOCKBR will talk about the CVM , its importance and the benefits of regulating stock tokens , funds and other assets!


The Securities and Exchange Commission operates in the Brazilian capital market, regulating operations intermediated by financial institutions registered with the CVM according to strict criteria regarding their ability to:

  • Offer products with clear information to the public;
  • Guarantee the remuneration provided for in the agreed conditions;
  • Comply with all rules and procedures related to the asset;
  • Demonstrate financial and administrative soundness.

Through its rules, the CVM also ensures that investors will comply with all obligations assumed, so that the financial ecosystem is:

  • Predictable : investors, companies and governments will act within clear limits, preventing fraud and curbing abuse;
  • Transparent : all rules, procedures and restrictions must be clear to capital market participants, encouraging assertive supply and investment decisions.

As an autarchy, the CVM is subordinated to a government body, in this case the Ministry of Economy, but it has independence to define all capital market control and management policies.


These are credit or property securities , issued by private or public entities, offered on the capital market and that generate participation or remuneration rights on the activity of the entity selling them.

The main objective of entities when launching their bonds is to raise funds to develop projects to expand their activities, without resorting to bank loans that, even when possible, have a high financial cost .

When we think of movable assets , the first option that comes to mind are the well-known shares – the sale of fractions of a company’s share capital in exchange for a share in the gains from the valuation and results of the business.

However, the universe goes much further. There are other popular products on the financial market, including:

  • Debentures , which are bonds issued by companies, similar to shares and with pre-defined remuneration;
  • Certificates of deposit of securities , used for the purchase of shares in companies abroad;
  • Commodity futures contracts ;
  • Guarantees and obligations of companies and governments, such as precatories;
  • Investment fund shares.


Security tokens are encrypted representations of securities offered on the market through the blockchain and a smart contract .

As with the market we know today, tokenizing tradable assets is an excellent way to raise funds for companies and governments to finance their expansion and growth projects.

Tokens can be used to trade all securities , including debt and bonds. The tokenization of court orders is a great example.

These liquid and certain government debt securities based on final court decisions have become a highly profitable business for those who offer (holds papers received from the government) and those who invest.

It should be noted that the potential for return and the degree of risk are inherent to the digital financial asset offered and are independent of the way in which it is traded – whether through exchanges and brokerages or through a blockchain .



The CVM only regulates and controls operations made with security tokens or security tokens , as they are the cryptographic representations of securities over which the entity exercises control and supervision.

When we talk about regulating tokens , it may seem contradictory to those who know the keyword behind the creation of cryptocurrencies : decentralization .

After all, tokenization is done on a blockchain , a technological environment that was born out of a desire to create decentralized monetary and finance systems – without bank or government control.


However, when we talk about tokenizing quotas of funds , for example, do some important facts stand out?

  • Financial products do not lose the characteristics that oblige them to be submitted to the control and inspection of the CVM;
  • As a result, cryptocurrency exchanges are required by law to be registered to operate with financial asset token offerings ;
  • Investor expectations do not change – he expects to invest with the same security, even if through a better method.

We can conclude that, even regulated, trading on the blockchain brings together the legal security required by the CVM with the various benefits of tokenization .


In addition to CVM oversight being exercised both in the offline market and on the blockchain , there are other important advantages for asset holders and investors.


Blockchain uses high-level cryptography for the creation and movement of digital currencies and also for generating asset tokens – and which can include goods other than financial assets , such as real estate and works of art, for example.

It is also used to capitalize projects in sectors such as mining. To ensure the integrity of all these complex operations, the network controls each transaction individually, from offers to token deliveries.


All operations involving security tokens are supported by absolute efficiency and processing speed within the blockchain , which provides an agility that is not possible in the bureaucratized environment of the traditional market.

Furthermore, blockchain works around the clock as it does not depend on human presence. Share tokens or tokenized debentures can be traded at any day and time, increasing asset liquidity .


All transactions are recorded in an electronic ledger , allowing tracking without losing confidentiality, as each transaction receives a unique access key that only computers on the network know.

Everything is done without human interference and it is impossible for a company to deliver the traded tokens without the investor guaranteeing their payment in advance.

In addition, CVM regulation also guarantees transparency and mutual trust between investors and asset holders .

BLOCKBR Digital Assets is a fintech that combines technological innovation and digital knowledge to transform physical assets into digital ones, in the asset tokenization process.

The offer of tokenized physical and financial assets, both current and new, is democratic and decentralized, which makes investing safer, 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 ?

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