✍️ 14 October, 2022 – 10:41 👤 Editor: Jakub Motyka
- The Brazilian Securities and Exchange Commission wants digital assets treated as securities.
- It is the latest directive in Brasília for the largely unregulated sector.
- The latest news about cryptos, in our Telegram channel.
The Brazilian Securities and Exchange Commission (CVM) has released an opinion paper to clarify how cryptos can be labeled as securities. The draft acknowledged the lack of proper regulations in the digital assets space, broadly defining cryptos as digitally represented assets.
Specifically, the policy termed them as assets safeguarded by cryptographic technology, transacted, and stored in distributed ledgers.
Further, CVM has outlined the requirements for the classification of the digital money. It said that they should reflect a digital version of shares, debentures, subscription bonuses, receipts, right coupons, split certificates, certificates of deposit of securities, and debentures notes.
CVM Classifies Digital Assets In Three Basis
The paper has grouped cryptos into three expansive levels. First, the payments tokens. According to the commission, these are digital assets that function the same as fiat money. Those are presented as a unit of account, a medium of exchange, and a store of value.
The second level is the utility tokens. The guidance opinion document has termed them as assets used on a specific product or service.
Lastly, the third category in the draft is the asset-backed tokens. They can be either real or virtual. Stablecoins and NFTs fall in the criteria as tokens that stand in for other assets.
The guide also states that based on the particulars of each token in the last category, the digital assets are generally described as securities.
The Policy Framework Authorizes CVM As the Crypto Regulator
The draft has mandated the commission to monitor the crypto space keenly based on the new directives. CVM adds that the usual permission or registration is unnecessary for tokenizing assets. The provision, however, requires that the securities follow the set laws.
Cryptos remain largely unregulated in the South American nation. However, the Brazilian Congress is expected to vote on a bill regulating the same. In addition, the central bank of Brazil is also monitoring the feasibility of CBDCs.
Meanwhile, cryptocurrencies are currently on a recovery. This is despite the latest Consumer Price Index report showing a high inflation rate. BTC was trading at $19,625, while ether was at $1,321 at the time of writing.
More crypto news:
- Why Is Crypto Up Today? Impact Of The U.S. Consumer Price Index (CPI)
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- BNB Smart Chain Begins Its Hard Fork After The Hack Of USD 100 Million
ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.
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Image sources:
- bitcoin-cryptos-brazil: Unsplash
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