Spain’s National Securities Market Commission (CNMV) has joined the US Securities and Exchange Commission’s warning over cryptocurrencies and Initial Coin Offerings (ICOs).
The CNMV has published on its site the translation of a statement released by the chairman of the US Securities and Exchange Commission (SEC) Jay Clayton on 11 December 2017, in which he warned cryptocurrencies and ICOs investors enjoyed lower protection than traditional markets investors did, which increased the risk of fraud or manipulation.
According the CNMV, the considerations, recommendations, warnings and conclusions contained in the SEC’s statement might be a “useful guide for investors and professionals in the sector” despite having recognised that the regulatory environment of both markets was considerably different.
“A number of concerns have been raised regarding the cryptocurrency and ICOs markets, including that, as they are currently operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation.
“Investors should understand that to date no initial coin offerings have been registered with the SEC. The SEC has not either approved any exchange-traded products (such as ETFs) – for listing and trading – holding cryptocurrencies, or other assets related to cryptocurrencies. If any person today tells you otherwise, be especially wary (…)”, the statement read.