Two projects related to blockchain technology were selected by the first edition of the Securities and Exchange Commission’s (CVM) regulatory SandBox. Geared towards assets tokenization, only three projects were approved in the final phase of the selection process.
In total, 33 projects were enrolled in CVM’s regulatory SandBox. Launched in late 2020, the commission disqualified 27 projects for lack of information and/or eligibility in the first phase.
With the initial declassification phase, six projects were evaluated by the CVM, which decided to approve only three of them in the end.
The selected projects were presented by the companies Vórtx Distribuidora de Títulos e Valores Mobiliários and Vórtx QR Tokenizador; Basement Soluções de Captação e Registro and Beegin Soluções em Crowdfunding, Câmara Interbancária de Pagamentos (CIP) and Flow Representações (Finchain).
The projects presented by Beegin Soluções em Crowdfunding, Câmara Interbancária de Pagamentos (CIP) and Flow Representações (Finchain) will use blockchain technology to tokenize securities for small and medium-sized companies.
Meanwhile, the projects of Basement Soluções de Captação e Registro and Beegin Soluções em Crowdfunding aims to tokenize quotas of closed funds and debentures.
Launched in May 2020, CVM Instruction 626 regulated the regulatory SandBox in Brazil. According to a CVM memo, the sandbox will function as an “experimental environment”.
“The CVM regulatory sandbox is an experimental environment in which admitted participants will receive temporary and conditional authorizations to develop innovations in regulated activities in the capital market and will have their course monitored and guided by the CVM”.