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Brazil Pushes Mandatory Tokenization for Market Surveillance
Otto Lobo, president of the CVM, Brazil’s SEC equivalent, emphasized the necessity of mandatory tokenization combined with AI supervision to modernize traditional market surveillance methods. The CVM is pushing for asset tokenization as a key element to overhaul the current market structure guardrails, which has been overwhelmed by the growth of the fund industry in Brazil. The modernization process, expected to add 1,200 new employees in the next few years, involves the use of decentralized ledger technologies (DLTs) for immediate settlements and smart contracts for compliance and know-your-customer requirements.