The Securities and Exchange Commission (CVM) completed 46 years of existence in recent days and during the commemorative event, the current president, João Pedro Nascimento, emphasized that cryptocurrencies need registration to improve the capital market.
This is because some new cryptocurrencies are required to register before their digital tokens are offered to investors.
But many ignore the understanding of CVM in Brazil and come up with news. In the event of a scam, customers are therefore at their wit’s end and cannot appeal.
Problems arise mainly with ICOs – English acronym for Initial Coin Offerings – a practice banned by the municipality.
CVM President reminds that new cryptocurrencies must be registered
The Securities and Exchange Commission regulates the capital market, such as equity investments. In recent months, the market for cryptocurrency, or “cryptoactives” as they are called by governments, has also been looked at.
And to celebrate 46 years since its founding in Brazil, CVM organized an event. In one of the panels, participants could discuss new technologies and regtech.
During the discussions, the chairman of the CVM reminded that an opinion has been created by the autarchy that disciplines the cryptocurrency market. According to him, it is agreed that the commission should be the oversight body for those assets that qualify as securities.
“CVM understands that it can and should be the agency responsible for regulating crypto-assets that qualify as securities, as outlined in CVM Guidance Opinion 40/2022.”
Also during his speech, João Pedro Nascimento stated his intention to bring cryptocurrencies to a more regulated market. So there will be protocols and reports that companies will have to adhere to, with the aim of improving the Brazilian capital market.
“By bringing crypto assets to the regulated market, CVM expects participants to make public offerings, register and follow the protocol of securities issuers, contributing to the health, integrity and development of the capital market.”
CVM becomes technology regulator
In addition to the issue of cryptocurrencies, today the CVM understands that it can be a technological regulator in the market.
For example, President João Pedro emphasized that he is trying to improve the tools at his disposal to improve the implementation of activities. For example, artificial intelligence is one of the tools available to CVM to tackle market monitoring.
“In a market that increasingly uses technology to carry out its activities, it is essential that market surveillance is also supported by technology. natural language processing. That is, the use of artificial intelligence in the analysis of information released by our regulated companies, promoting greater efficiency in our work.”
The event “The CVM and the capital market: towards 50 yearshad a general clarification on the current practices of the autarchy, as well as what is planned for the future.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
