São Paulo Says No to Tokenized Real Estate: The Plot Thickens!

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In a move that can only be described as a bureaucratic tango, the dear government of São Paulo, Brazil, has decided to put the brakes on the registration of documents linking those shiny little tokens to actual real estate properties. This decision, requested by a band of registrars who, one might imagine, were clutching their quills and parchment in despair, halts a market that was merrily pirouetting in a rather shady gray zone, now left to fester until someone decides to sort out the mess with some proper regulation.

São Paulo Puts the Kibosh on Real Estate Tokenization Projects

Ah, São Paulo, the city where the coffee is strong, and the regulations are stronger. It seems they’ve decided that no more will the bright-eyed investors be allowed to register tokenized properties. Back to the drawing board they go!

According to the ever-reliable Valor Econômico, the General Inspector of São Paulo, Francisco Eduardo Loeiro (who surely has a title as long as his paperwork), has deemed it fit to prohibit the registration of any property associated with a blockchain token. A clear signal, or perhaps a foghorn blast, that the notaries are having their day in the sun over those pesky companies dabbling in real estate tokenization.

Flaviano Galhardo, who holds the impressive title of executive director of the National Operator of the Electronic Real Estate Registration System (ONR) – because why have a simple job title when you can sound like a character from a sci-fi novel? – agrees with this outcome, stating it clarifies the economic rights of token holders. Apparently, having a token doesn’t mean you own the property; it just means you own… well, a token. Sort of like owning a ticket to a show without actually being able to sit in the front row.

“The token can represent investment contracts or financial instruments,” he mused, “but it cannot induce people to believe that it is a real right of ownership of a property.” Quite! Because believing you own something simply because you have a shiny token is akin to thinking you’re a wizard because you can buy a wand at the local shop.

Mr. Galhardo, with all the gravitas of a sage, warned that introducing some parallel token system could very well undermine the 180-year-old legal framework that has been diligently holding together the traditional real estate registry. Who could have guessed?

He assessed:

“The real estate registry today is what gives ballast to the entire real estate production chain, ranging from civil construction to real estate credit. Everything is built on the security of the property registry.”

The ONR, perhaps wishing upon a star, has asked the National Council of Justice (CNJ) to whip up a regulation for real estate tokens, but as of yet, nothing has materialized. Insiders are calling the inspector’s latest dance move a regression, as it halts an industry already pirouetting through murky waters without a life preserver.

Meanwhile, the residential real estate sector in Brazil, which is currently valued at a staggering $106 billion, is projected to strut its stuff all the way up to nearly $139 billion by 2031, according to Mordor Intelligence. Yes, that’s right-Mordor. Not a place you’d expect to find sound financial advice, but here we are.

FAQ

  • What recent decision did São Paulo make regarding tokenized real estate?
    São Paulo has clamped down on registering properties linked to blockchain tokens, marking a rather dramatic setback for real estate tokenization.

  • Who decided to prohibit tokenized property registrations?
    The illustrious General Inspector of São Paulo, Francisco Eduardo Loeiro, took it upon himself to make this decree.

  • What concerns did experts raise about real estate tokens?
    Experts have raised quite the hullabaloo, arguing that tokens can’t convey true ownership rights and could very well undermine Brazil’s venerable traditional property registry system.

  • What is the current status of the real estate sector in Brazil?
    The residential real estate market in Brazil is valued at over $106 billion, with projections to reach an astonishing nearly $139 billion by 2031. A figure that would make even the most hardened financier gulp!

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2026-01-30 13:07