Brazil CVM Forms Tokenization Working Group to Study DLT Rules

Brazil's Securities and Exchange Commission (CVM) issued Ordinance No. 177 on July 17, formally establishing a securities tokenization working group (GTT) to study, test and draft regulatory measures for securities registration, custody, trading and settlement related to distributed ledger technology (DLT). According to Foresight News, the group brings together representatives from 14 internal CVM departments and may invite government agencies, self-regulatory organizations and market associations to participate. The working group will initially operate for 120 days and can be extended by 30 days. Its first task is to submit a draft experimental regulatory framework for securities tokenization to the CVM board within 60 days of its creation. CVM Chairman Otto Lobo said tokenization is one of the most important structural changes in capital markets and requires regulatory innovation to advance alongside it.