World Bag Federation, the official English name of the World Exchange Federation (WFE), has warned of the risks of the platform provided by tokenized actions without regulatory oversight. He says that although they are presented as traditional behaviours, these products are not in practice and can put investors at risk, compromise market integrity and promote the elution of financial standards.
In its statement, WFE shows that the legal status of tokenized actions is not 100% clear in all jurisdictions, but emphasizes that it is largely considered a derivative instrument in Europe. It also warns that this uncertainty will reinforce the need to establish clear rules.
To protect investors and ensure market transparency, The federal proposals for specific regulatory measures. Among these, “confirming the principles of technical neutrality” means applying standards uniformly regardless of the technical form of the financial instrument.
It also ensures that tokenized actions, which are required “to ensure equality of regulations,” meet the same requirements for dissemination, negotiation, compensation and liquidation, as traditional values.
Other recommendations seek to strengthen supervision and legal certainty. In this context, it aims to “promote supervision coordination.” This means strengthening international cooperation to prevent regulatory arbitration and ensure consistent control of tokenized markets.
Finally, regulators are encouraged to “clear legal frameworks” and not only resolve doubts about property, custody and applicability in tokenized environments, but also “prevent commercialization of derivative products as equity equivalents,” so no equipment is sold.
WFE suggests that these recommendations require adoption of new technologies in financial markets to be safe, responsible, beneficial and to prevent innovation from becoming a risk to the stability of the global capital system.
It’s worth noting Tokenized actions are digital representations of traditional value issued on cryptocurrency networksallowing you to buy, sell and transfer faster and more directly.
Unlike general actions negotiated in a regulated bag and subject to strict legal frameworks, tokenized possibilities are circulated on non-extended platforms, and their legal status is not yet fully defined.
The discussion of tokenized behavior is further related to recent events. At the end of June, San Francisco startup Dinari became the first broker in the United States and received approval from the Bags and Securities Commission (SEC), which operates with tokenized action. As reported by Cryptonotics, this advancement allows investors to buy and sell digitalized values known as DSHARES under defined regulatory frameworks.