Spain’s CNMV Turns Eye to Cryptocurrency Brokers
- So far, Spain does not have specific legislation governing cryptocurrencies.
The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, today blacklisted a cryptocurrency and FX broker called FX TRADING CORPORATION. The company was added to the regulator's warning list after it was found facilitating trading in different assets for Spanish citizens without being authorized to provide investment activities in the country.
The CNMV accuses FX Trading Corporation of soliciting clients and providing them with financial services, which violates the second paragraph of Article 17 of the Securities Markets Law.
Although the financial watchdog didn’t provide specific details, the inclusion of the domains means that they are not officially registered in Spain and are thus not authorized to offer trading services to local traders.
So far, Spain does not have specific legislation governing cryptocurrencies. The country’s regulators only tried to provide a definition of the virtual assets exclusively for the purpose of AML laws.
Meanwhile, CNMV follows in the footsteps of other European regulators that frequently issue a series of warnings against companies engaged in schemes to promote cryptocurrency mining and investments.
FX Brokers Come Under Scrutiny
Over the last two years, the CNMV issued many circulars setting a host of new rules regarding trading costs and risk disclosure, Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and advertising requirements. In essence, the guidance concerns companies that offer Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contracts for difference (CFDs) and other speculative products such as binary options among retail investors in Spain.
For example, the CNMV requires any broker offering ‘excessive leverage’ greater than 10:1 to explicitly warn investors that it believes that such products are not appropriate for retail investors due to their complexity and the risks involved.
Operators are also required to ensure that clients are aware of the estimated cost in case they decide to close their position immediately after entering into the transaction.
The Comision Nacional del Mercado de Valores (CNMV), the financial regulatory body of Spain, today blacklisted a cryptocurrency and FX broker called FX TRADING CORPORATION. The company was added to the regulator's warning list after it was found facilitating trading in different assets for Spanish citizens without being authorized to provide investment activities in the country.
The CNMV accuses FX Trading Corporation of soliciting clients and providing them with financial services, which violates the second paragraph of Article 17 of the Securities Markets Law.
Although the financial watchdog didn’t provide specific details, the inclusion of the domains means that they are not officially registered in Spain and are thus not authorized to offer trading services to local traders.
So far, Spain does not have specific legislation governing cryptocurrencies. The country’s regulators only tried to provide a definition of the virtual assets exclusively for the purpose of AML laws.
Meanwhile, CNMV follows in the footsteps of other European regulators that frequently issue a series of warnings against companies engaged in schemes to promote cryptocurrency mining and investments.
FX Brokers Come Under Scrutiny
Over the last two years, the CNMV issued many circulars setting a host of new rules regarding trading costs and risk disclosure, Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term and advertising requirements. In essence, the guidance concerns companies that offer Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term, contracts for difference (CFDs) and other speculative products such as binary options among retail investors in Spain.
For example, the CNMV requires any broker offering ‘excessive leverage’ greater than 10:1 to explicitly warn investors that it believes that such products are not appropriate for retail investors due to their complexity and the risks involved.
Operators are also required to ensure that clients are aware of the estimated cost in case they decide to close their position immediately after entering into the transaction.