Brazilian financial market regulator issued a joint statement: Implementing a “regulatory sandbox” mechanism to respond to challenges from new technologies such as DLT and blockchain

According to the China Financial Information Network, on June 13, the Special Finance Secretariat of the Brazilian Ministry of Economic Affairs, the Central Bank of Brazil, the Securities and Exchange Commission and the State Private Insurance Regulatory Authority issued a joint statement saying that Brazil will implement a “regulatory sandbox” mechanism. This move is the response of the regulatory authorities to the technological transformation of the financial and insurance sectors. The use of innovative technologies such as distributed ledger technology (DLT), blockchain, and artificial intelligence has driven new business models to deliver higher quality and broader products and services. According to the joint statement, this situation poses a challenge for regulators, requiring regulators to take the necessary flexibility to adapt their regulations to technological change and continuous innovation, to the extent permitted by law.