The Brazilian Securities Regulator, known as CVM, has initiated an investigation into tokenization companies and their operations. CVM has reportedly sent letters to companies that provide tokenization services, requesting information about their activities and the types of tokens they have issued.
These letters ask for details such as the number of tokenization operations completed by each company, the names of the assets supporting these operations, and the classification of the tokens issued (whether they are utility tokens, payment tokens, or securities).
Several tokenization companies in Brazil, including Liqi, Peerbr, and Hurst Capital, have confirmed receiving these letters. However, companies like Tokeniza and Foxbit have not been contacted as part of this investigation.
According to an anonymous source, tokenization providers have been asked to report on their activities starting from January 2023. This has caused some discomfort among the tokenizers, as they fear they may be providing evidence against themselves.
CVM has stated that it is conducting this investigation as part of its supervision of institutions in the crypto ecosystem that potentially deal with security tokens. The regulator claims that it is trying to understand the roles and activities of these companies.
However, some tokenization service providers feel threatened by this probe, as it deviates from normal procedures and raises concerns about its implications.
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