2023-09-15 22:11:26
© Reuters. Fan tokens are not securities, CVM decides in statement
Blockmarket – The Securities and Exchange Commission (CVM) released a new statement on fan tokens. According to the publication on the municipality’s Twitter (now X), this type of token cannot be understood as an asset of value.
Therefore, the offering and trading of fan tokens is not subject to prior authorization from the CVM. The commission, which is responsible for regulating the crypto market in Brazil, is publishing educational content about cryptocurrencies.
This information will serve to support the rules for regulating the crypto market. In addition to the CVM, the Central Bank of Brazil also participates in this regulatory process.
Offer of fan tokens in the crypto market
The CVM released an explanatory video about what fan tokens are. In addition to providing informative content about this type of digital asset, the commission clarifies that it cannot be understood as a security.
Have you heard about fan tokens? Our Market Development Superintendent, Antonio Carlos Berwanger, explains a little about the subject and CVM’s actions in relation to them.#let’s go together for a strong regulator and a more modern capital market.#cvm #saf #football pic.twitter.com/uIIy7YJNHE
— CVM (@cvmgovbr) September 14, 2023
In other words, prior authorization from the commission will not be required to issue and trade fan tokens on the market. However, a change in crypto regulation may require authorization for all companies in the crypto market, including platforms that trade and issue fan tokens.
In the video, market development superintendent, Antonio Carlos Berwanger, explains what fan tokens are. He says that the digital asset serves to strengthen the community of a football team, for example.
“Fan tokens are tokens that enable greater engagement among football team fans. Through them, fans can choose the paint design of the club’s bus, the color of the third uniform for a given game, among other examples.”
CVM classifies assets as non-movable
Without clear legislation on digital assets that are securities, the CVM publishes explanatory content on some types of tokens, such as fan tokens. For the commission, this type of asset is classified as non-movable.
Therefore, Antonio Carlos explains in the video that fan tokens are not intended for investment. Therefore, this type of asset cannot be classified as a security, which does not require authorization from the CVM in cases of issuance and trading of this type of token.
“So, fan tokens are often used to engage fans with your team. We are here to remind you that fan tokens are not considered securities. Because, at the moment, they have no concept of investment, that is, they are not offered with the aim of offering a financial return to the person who invests in them.”
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