The Spanish Financial Regulator is easing the company’s tough stance on cryptocurrencies by announcing an unprecedented move that will give institutional investors the green light to make such business decisions. The National Securities Market Commission (CNMV) has issued guidelines authorizing institutional crypto investments under certain conditions.
Fund managers should identify “high risks” for cryptos in marketing resources
According to El Economista, the Spanish-based guidelines allow mutual funds and collective investment schemes (sicavs) to trade in virtual assets on a daily basis, but only those “where the market price is determined from the sales activities carried out by third parties. “
So-called collective investment institutions (IIC) are not allowed to invest money in derivatives and securities such as crypto-powered exchange-traded goods or exchange-traded debt securities.
In addition, the guidelines state that fund managers should always include adequate and clear warnings in their marketing resources as part of the consumer protection regulation.
Despite the new regulations of the Spanish financial watchdog, at the time of going to press, no domestic fund managers had announced investments in the field of virtual currencies under the specified categories.
However, companies like Blackrock Spain have started treading water and opening up to the possibility of putting their funds into digital assets. However, due to the high volatility, Spanish companies were reluctant to take full exposure, El Economista said.
Crypto reputation under the Spanish government and regulators
The CNMV’s warnings aren’t surprising given the backdrop of stricter rhetoric about cryptocurrencies, both government and watchdog.
As reported by Bitcoin.com News in February, Spanish Economy Minister Ana de la Cueva said that cryptocurrencies like Bitcoin (BTC) “pose a risk of failure because the user does not have the protection offered by traditional payment systems against counterparty failure. “
Recently, Rodrigo Buenaventura, CNMV President, commented on his stance against street advertising related to Bitcoin, believing it to be “risky”.
What do you think of the guidelines of the CNMV? Let us know in the comments below.
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