Spain’s financial markets regulator, known as The Comision Nacional del Mercado de Valores (CNMV) blacklisted today, a website that sold Ethereum-based tokens, AlyCoin to citizens without due registration.
Per the regulator, the AlyCoin websites (Alycoin.net and Alycoin.org) was facilitating the sale of illegal investment products to investors and had not received any approval whatsoever from authorities to conduct the token offering.
Specifically, the CNMV alleged that the masterminds behind AlyCoin violated the second paragraph of Article 17 of the Spanish Securities Markets Law. However, the regulator failed to share more insights regarding the fraudulent project, with the only allegation being that the project is not authorized to sell its token to local investors.
Following the red flag of the AlyCoin ICO by Spain’s CNMV, a further study into the project revealed that it uses the same model prominently featured by many fraudulent ICOs.
The project claims to be solving a problem that has already been addressed, which is creating usability tools for cryptocurrencies worldwide and uniting users, businesses, and transport in the new era of digital payments through cryptocurrencies.
Regarding its AlyCoin token, the website alleges that there are an amount of 82,354,000 tokens ready to go to market, “along with a solid ecosystem of applications that will give usability and value to the currency.”
“You have the possibility to maximize your earnings by acquiring it at the ICO stage,” another section of the website reads, followed by a picture of coins highlighting different packages that users can buy into, ranging from $15-$100,000 for VIP investors.
Meanwhile, Spain currently has no precise regulation for the crypto industry with the Central Bank saying back in February that “there is no State in which any virtual currency is legal tender,” and also that companies in the industry work operate without regulatory supervision.