Brazil's CVM Launches 120-Day Working Group to Regulate Securities Tokenization, Targeting $740M Market

According to an announcement on Friday, Brazil's Securities and Exchange Commission (CVM) established a working group to test onchain securities and draft future token regulations. The 14-member group, composed of CVM employees and external participants, will design an experimental regulatory regime within 60 days and deliver final regulatory recommendations after 120 days.

The initiative responds to surging local demand in securities tokenization, with the CVM estimating volumes would surpass $740 million in 2025. The working group will evaluate cybersecurity, analyze regulatory sandbox results, and assess the impact of decentralized technologies on Brazil's capital market structure.