backThe Courts of Justice Inspectorates of São Paulo, Rio Grande do Sul, Santa Catarina, Mato Grosso do Sul, and Espírito Santo have issued regulations prohibiting real estate registry offices from linking official property records to digital tokens recorded on blockchain networks. In São Paulo, Official Order (Provimento) No. 54/2025 expressly forbids registry officers from making any entries, annotations, or registrations that connect ownership of real property to digital representations. As a result, the transfer of title and other rights in rem continues to depend on formal registration before the competent real estate registry, in full compliance with statutory requirements governing procedures, timelines, and applicable fees.
The new rules were adopted following submissions from entities associated with Brazil’s land registry system and reflect concerns that blockchain-based solutions could be used to bypass or replace the traditional role of registry offices. Although tokenization has not been prohibited as a technological or contractual tool, the regulations make clear that it cannot produce in rem legal effects outside the official registry framework. The Inspectorate of the National Council of Justice (CNJ) has stated that there is currently no nationwide regulation authorizing such practices. Similarly, the National Operator of the Electronic Real Estate Registry System (ONR) maintains that the creation and transfer of real estate rights must take place exclusively within the formal registration system. The matter remains subject to debate. Representatives of the crypto-economy sector argue that blockchain technology could serve a complementary function, enhancing efficiency and transparency. By contrast, legal commentators observe that, as long as traditional registration remains mandatory and fully enforceable, alternative parallel models may struggle to gain traction in the real estate market.
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