Spanish Financial Authority Raises Alarm Over Unscrupulous ICO Activity

A financial regulatory agency in Spain has published a warning call to the public to avoid an Ethereum-based token known as AlyCoin.

According to a news release published on the 18th of November, the Comisión Nacional del Mercado de Valores cautioned the public to steer clear of AlyCoin as the digital currency is not registered in the country nor is it listed in affiliated registries and as such encourages ungoverned ICOs.

The agency purports that AlyCoin renders financial services that violate the Securities Markets Law.

AlyCoin’s Claims
The firm regards itself as an autonomous digital currency based on Ethereum. The firm’s ICO period is slated to cut through from December 24, 2018, to December 24, 2019. After the ICO, the firm plans on distributing 35 million tokens in batches of 5 million at a starting price of $0.10 per token in the first batch. The firm also says it is already prepared to pump over 82 million tokens in the market.

AlyCoin has mentioned that it is going to run its operations in full adherence with corresponding rules and regulations and endeavor to secure all the essential licensing and approvals. The firm explained that it may not be feasible to assure that any such licensing or approval will be procured within a given time. What this means is that the initiatives explained in this document may not apply to all markets, which is a contradiction to its operation in the Spanish market.

More Blacklistings Against Crypto Brokerage Companies
Already, some weeks ago, the German Federal Financial Supervisory Authority published a caution against Bulgarian crypto brokerage, 5Capital following the event of the firm illicitly offering Contracts for Difference developed to expose customers to the price movements in the crypto market.

Sometime in October, the Malta Financial Services Authority cautioned about a Bitcoin scam dubbed Bitcoin Future as it appeared to share similar properties as a previously observed scam called Bitcoin Revolution which had previously been given two public cautioning this year.