The security regulator in Spain has issued a warning regarding a group of crypto companies that are operating without the proper licenses in the country.
According to the regulator, these crypto exchanges are not authorized to offer investment advice. Investors are strongly advised to exercise caution and thoroughly research before engaging in trading activities on crypto exchanges within Spain.
Investors Advised to Take Caution With These Crypto Companies in Spain
In a recent report, The National Securities Market Commission (CNMV) declares that there are 18 crypto companies operating without a license in Spain.
These include Top Tier Capital, BitBinx, Swiss Investment Funds, BreadInx, and Universal Trade.
Read more: 10 Best Crypto Exchanges And Apps For Beginners In 2024
The regulator further warns investors to be cautious over any investment advice it receives from the listed companies, as they are not regulated under CNMV legislation.
“The CNMV states that these companies are not registered in the corresponding register of this Commission and, therefore, are not authorized to provide investment services or other activities subject to CNMV supervision.”
In response to heightened regulatory measures by the Spanish authority, crypto firms are refining their advertising tactics to ensure better protection and understanding of crypto investment risks among investors within the country.
Spain Crypto Companies Must Adhere to Strict Promotion Rules
In November 2023, BeInCrypto reported that the CNMV commenced disciplinary action against Spanish technology company Miolos S.L. (Miolos) for violating crypto promotion rules. Miolos allegedly excluded warnings about the risks of crypto.
Similarly, the UK FCA recently implemented their own version of promotion rules against crypto firms.
The FCA’s recently released handbook spans more than 200 pages. It details its purpose, intended audience, and the regulations that crypto firms must adhere to when promoting digital asset services.
Read more: 11 Best Altcoin Exchanges for Crypto Trading in January 2024
Crypto firms typically employ conventional advertising methods such as sponsorships at major events, traditional television, print, and radio. However, certain exceptions are recognized by the guidelines that do not require adherence to these traditional approaches.
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