The National Securities Market Commission (CNMV), which is a regulatory body responsible for the inspection of Spanish securities markets confirmed that it hasn’t officially given any license to ‘any' entity to operate an ICO (Initial Coin Offering).
CNMV passed the announcement on March 26th that it hasn’t approved (up till date) and vetted any entity in the ICO industry to pass an ICO.
It is worth noting that CNMV issued a letter to ICO investors to include a disclaimer in their project that it hasn’t approved or subjected any project to any kind of review.
According to the law by the regulatory body, any ICO project that does otherwise is unacceptable, unless reviewed and approved by the regulatory authority before the commencement of the project.
Subsequently, CNMV further stressed that it is restricted to confirming if tokens can be securities and that the sale of digital assets below a certain limit does not need approval from them.
It is also necessary to know that the required limit is when the issuance of the token is less than €5 million and targets not less than 150 investors; in order words, where the minimum amount invested per every investor should be up to €100,000.
“This, logically, is independent of the fact that the participation of an investment services company may be necessary, in accordance with the provisions of article 35.3 of the LMV [Spanish Securities Market Act] and in the terms set out in the criteria published by the CNMV in this regard.”
The CNMV is a regulatory body involved in the supervision of the Spanish market and the activities involved. This Securities Market Law 24/1988 created this body. The Securities Market Law offered a great modification in the Spanish financial system. Ever since the passing of this law, it is necessary to note that the administration adapts and introduces new procedures to protect investors.
Furthermore, CNMV focuses on transparency in Spanish markets and to ensure that prices are corrected, and investors get the optimum protection. It is also important to know that CNMV receives its information from market participants.
The main focus of the regulatory body is on organizations that issue or offer securities to be placed on companies that provide investment services and schemes and also secondary security markets, which means that CNMV practices intense supervision which assures the security of transactions.
CNMV is also involved and collaborates with institutions like IOSCO (International Organization of Securities Commissions), ESMA (European Securities and Markets Authority), and FSB (Financial Stability Board). The regulatory body also partners with Ibero-American Institute of the Stock Market.
Several reports stated earlier that CNMV included just 23 unapproved forex and crypto-entities to its flagged list. Part of these flagged entities was a forex and a crypto-exchange flagged and warned by the Polish Financial Supervision Authority for working in Poland without getting any approval by the Polish government.