Financial controller Spain clarified his position on regulated funds that invest directly in cryptocurrencies. These foundations are legally approved in accordance with the Law 22/2014, and investments can be made through three types of legal entities.
The national Commission for the securities market of Spain (CNMV — Comisión Nacional del Mercado de Valores) recently clarified its position regarding registered funds that invest directly in cryptocurrencies.
In the document «Questions and answers» about the activities and services that may fall under regulation of the Commission, addressed to FINTECH companies, one of the questions: «Can the Fund, the CNMV was directly to invest in cryptocurrencies?», the regulator says:
«This type of Fund has no legal force in accordance with the Law 22/2014, which regulates activities in addition to venture capital and other types of collective investment companies of closed type and their management organizations.»
Law 22/2014 legalizes private companies collective investment (EICC), closed-end investment funds (FICC) and closed-end investment company (SICC).
EICC, FICC or SICC
CNMV explains that investing in crypto currencies can be made through the EICC, FICC or SICC.
In respect of the EICC in article 2.1 of the aforementioned law States that «the policy of divestment of its members or partners» must meet two requirements. First, the «withdrawal of the Fund’s investments must be simultaneous for all investors or participants,» said the Commission. Secondly, «what is received by each investor or participant, is based on the rights that correspond to each of them, in respect of the conditions set out in its Statute or rules for each class of share».
The CNIC noted that FICC and SICC has its «numerous requirements». For example, FICC, was in the Commission shall be managed by the closed company, engaged in collective investments (SGEIC) or the management company of collective investment companies (SGIIC), which is authorized to manage these types of funds.» The Commission also noted that «the FICC and SICC do not fall under the regulation of the CNMV (excluding self-managed SICC)» on the basis of the provisions of article 85 of the Law 22/2014.
While registered funds can theoretically invest in the cryptocurrency directly, the Commission stressed that there are many factors that they should consider:
«Investments FICC and SICC in crypto currencies raise a number of practical problems related to compliance with laws relating to the valuation of assets, liquidity management, and guarantees the safety of deposits».
Europa Press reported earlier this month that the CNMV «will apply its rules of securities regulation to cryptocurrencies until then, until a common European regulation». The newspaper quoted Director General of the CNMV on strategic policy and international relations Victor Rodriguez (Víctor Rodríguez), who said:
«The approach adopted by the CNMV is an attempt to use existing regulation of securities to cryptocurrencies as long as no single international or European standard.»
In recent times Spain has started to closely monitor the cryptocurrency industry. Recently the Spanish government in the framework of detection and suppression in the country of potential tax evasion and money laundering using digital currencies turned
local cryptocurrency businesses with the requirement to provide data on the operations buyers of cryptocurrency.