CVM’s instruction draft for the institution of the regulatory sandbox model in the Brazilian market encourages the participation of non-operational companies in the sector, according to an input sent by the Brazilian Association of Cryptocurrencies and Blockchain (ABCB) in a public hearing to discuss the proposal.
According to the association, this is why Article 5 of the normative instruction does not draw objective criteria for segmentation of the size of the desired participating company, such as number of customers or billing to be achieved during the participation in the model of CVM regulatory sandbox.
Therefore, the lack of these criteria can discourage the interest and consequent adherence of more mature companies with greater potential for effective business development, making the project ineffective. For that reason, the association suggests that quantitative, specific and objective performance indicators should be added as a minimum participation criteria.
The association also comments on the criteria for closing the participation in CVM’s regulatory sandbox. In cases of exit due to withdrawal of the participating company, the association understands that there is no need for the company to execute a contingency plan. For the company, the current draft discourages the adherence to the project.
BitCapital calls for more clarity in risk indication and other topics
BitCapital, an open banking platform based on a blockchain, had also made comments to CVM’s standard. One is regarding to greater clarity in the indication of risks for companies that are joining the sandbox. The company also questions the maximum duration of the regime, inclusion of private market experts in the Sandbox Committee and calls for greater clarity in defining the innovative business concept, among other comments.
The normative instruction with the sandbox rules received contributions from other institutions, such as associations, fintechs and law firms. The CVM is currently analyzing the inputs received to include them or not in the definitive normative instruction. See here what were those.
The regulatory model of sandbox have been gaining strength around the world, as it allows the regulator to act with some flexibility in the granting of rights and distribution of duties, while granting the dreamed legal certainty to entrepreneurs and investors.
Recently, the Central Bank of Brazil (BCB) opened for public consultation minutes of normative acts dealing with the introduction of “Controlled Environment of Tests for Financial innovations and Payment” under the National Financial System and the System of Brazilian Payments.