On May 13, 2021, the National Securities Market Commission (CNMV) announced that they will allow investment funds and variable capital investment companies (SICAV) to invest in cryptocurrencies as long as they have daily trading.
The official announcement was made after updating the document where they indicate the “Questions and answers on the regulations of IIC, ECR and other closed collective investment vehicles”, which is published on its portal for public scrutiny.
According to the document, the Investment Funds and Companies (IIC), as well as the venture capital entities (ECR), may invest in cryptocurrencies through “financial instruments whose profitability is linked to such currencies”. However, they will not be able to invest in derivatives whose underlying is in cryptocurrencies, since according to the RIC laws this action is prohibited.
The market price will be determined based on the daily operations carried out by third parties
The funds will have the green light to invest in crypto, as long as the market price is determined according to the daily transactions carried out by third parties, this is to prevent any manipulation or speculation by them.
“Said instruments would be suitable as long as they have daily trading, in which the market price is determined from purchase and sale operations carried out by third parties (since in this case it would not be necessary to perform a” lookthrough “of the instrument).”
They should warn about the risk and implications of investing in cryptocurrencies
The CNMV indicated that, as these are high-risk investments, One of the requirements for this new permit was that investment funds had to inform their clients about the exposure risks that they could have when investing in cryptocurrencies., through the Fundamental Information documents for the Investor (DFI brochures).
“The prospectus and the DFI must include an express and prominent mention about the exposure to cryptocurrencies and the risks that it may entail”
This means that Spain, beyond thinking about prohibiting the use of cryptocurrencies, as some countries have done, are fighting to regulate cryptocurrencies, warning and making new investors aware of the latent danger that they can represent for the loss of your heritage.
In addition, this new permission is a way to help investors have a more diluted and perhaps a little more secure portfolio by not concentrating a large part of their capital directly in Bitcoin, exposing themselves to its high volatility and the existing risks of scamming. the time of your sale.
How I report BeInCrypto above, The CNMV and the Bank of Spain have warned on multiple occasions about the volatility and operational risk that exposure to cryptocurrencies entails. However, like other countries, they are willing to allow and legalize its use.
The CNMV post will allow funds to invest in cryptocurrencies in Spain was seen for the first time on BeInCrypto.