Brazilian SEC Defines Rules For Classifying Crypto Assets As Securities

The post Brazilian SEC Defines Rules For Classifying Crypto Assets As Securities appeared first on Coinpedia Fintech News

The Brazilian Securities and Exchange Commission (CVM) has released a new guidance opinion document that defines the criteria to determine whether certain cryptocurrency assets are securities. The CVM provides multiple categories for current crypto assets, identifies which can be seen as securities, and explains how it will act in these markets through the issue of a guiding opinion paper.

In the document, cryptocurrencies are described as digitally represented assets that may be stored and transacted using distributed ledger technologies and are encrypted using cryptography technology (DLT).

According to the new standards, tokens that are eligible to be classified as securities should be digital representations of the following structures: debentures, shares, subscription bonuses; subscription receipts, right coupons, and split certificates linked to the securities; debenture notes and certificates of deposit of securities.