A Spanish financial Regulator has issued a warning against the unregulated ICO Ethereum (ETH) based token called AlyCoin.
19 November 2019, AtoZMarkets – The regulator of the Spanish financial markets, the Comision Nacional del Mercado de Valores (CNMV), blacklisted today a cryptocurrency website. That promotes non-regulated ICOs for an ethereal token called AlyCoin. The crowd sale campaign added to the regulator’s warning list after its operators found facilitating unregulated investment vehicles for Spanish citizens. That is without authorized to carry out such activities in the country.
Spanish Regulator Warns Unregulated ICO
CNMV accuses AlyCoin of soliciting and providing financial services to clients, contrary to the second paragraph of Article 17 of the Securities Market Law. However, the financial supervisor did not provide specific details. The inclusion of the domains implies that they formally unregistered in Spain. And therefore are not allowed to offer investment services to local operators.
So far, Spain has no specific legislation governing cryptocurrencies. Regulators in the country have tried to define virtual assets only for purposes of anti-money laundering laws. The current legal structure does not contain a normative definition of cryptocurrencies. It is interesting to note, however, that central bank and CNMV’s statements describe concepts. They are such as the initial coin offerings and distinguish between security tokens. And those classified as utilities.
FX brokers come under scrutiny
In the meantime, the CNMV is following in the footsteps of other European regulators. Those often issue warnings against companies engaged in programs to promote cryptographic money extraction and investment. The oversight body’s warnings often lack technical specifications for these products. And that use Spanish terms which are easy to understand and accessible to the general public.
Over the past two years, the CNMV has issued numerous circulars establishing a series of new rules. That is regarding transaction costs and risk disclosure, leverage, and advertising requirements. Even before ESMA’s limits appeared, the CNMV required that any dealer offering “excessive leverage” above 10: 1 explicitly warn investors. It believes these products are not suitable for retail investors. because of their complexity and the risks involved.
Operators required to ensure that customers should aware of the estimated cost. They should decide to close their position immediately after completing the transaction.
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