CNMV Blacklists a New Unregulated ICO in Spain

The Comisión Nacional del Mercado de Valores, which is the financial regulator of Spain has blacklisted an ICO which was offering Spanish citizens a new Ethereum-based token. According to the CNMV, the ICO company had absolutely no authority or registered documentations in Spain and therefore did not possess any legitimacy in offering a security token to its customers.

In fact, it can be debated that without proper registration in Spain, the company was not allowed to offer pretty much anything commercially. The ICO in question is AlyCoin, which the CNMV claims were violating the second paragraph of Article 17 of the Securities Markets Law.

It’s important to note that the Article in question is derived from securities, and not necessarily a crypto-based asset. The reason being a complete lack of comprehensive legislation for crypto assets in the country.

This is not the first time the CNMV has issued a warning as well. Without proper legislation in governing cryptocurrencies, there’s not necessarily any mandate that the CNMV has to launch a fully-fledged investigation in these companies. Neither does it have the option to classify them as a real scam. The only thing the CNMV can potentially do, similar to its European contemporaries is issue warnings and hopefully, convince investors to steer clear of AlyCoin.

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