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Fintech Market Overview

This article does not constitute legal advice.

Crowdfunding in Brazil

Fintech Software

The above-mentioned enactment regulates transactions effected in the segment of securities, thus, the CVM – a specialized authority supervising over this segment – imposes the specific regulations on the relevant market. The Brazilian legislation introduces a so-called “open concept for security”. This means that each title or joint investment structure due to which rights to participation, partnership or remuneration emerge and whose revenue is rooted in the activities effected by an entrepreneur (or a third party), including the income aroused as an outcome of services provision complies with the security requirements. Any special joint investment structure meets the depiction above, it shall be covered by the relevant provision of the national legislation and the CVM regulations.1

Nowadays, the national innovative ecosystem of Brazil gains pluses rooted in CVM Rule No. 588/2017 that was originally drawn up in order to regulate crowdfunding process grounded upon investments (in other words, the allocation of securities via the specialized e-facilities). There is no need for such actors to legalize an offer prospectus in the CVM. The Rule implements some provisions that impose special requirements and liabilities to regulate the operation process of each platform, provide detailed data concerning oncoming offers, as well as estimate the likelihood of syndicated investment to be effected by an investor that is widely recognized throughout the market.1

Banking in Brazil

Fintech in Brazil

Fintech in other countries

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Brazil Fintech Lawyers

Ilya Druzhinin

Ilya Druzhinin

I have over 22 years of experience in legal practice, most of which is accompanied by e-com and fintech projects

Languages: RU EN

Notes
  1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/brazil
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