Spanish Financial Watchdog warns users against AlyCoin

• AlyCoin, whose ICO phase is currently going on, is planning to distribute 35 million tokens in lots of five million each.
• The warning has been issued because the coin is not registered in Spain or the corresponding registry.

According to a report by Finance Magnates, the Comisión Nacional del Mercado de Valores has warned users against AlyCoin. This is because the coin is neither registered in Spain nor the corresponding registry. This promotes unregulated initial coin offerings (ICOs).

The Ethereum-based token allegedly provides financial services to its users in violation of the second paragraph of Article 17 of the Securities Markets Law. AlyCoin’s ICO phase is scheduled to take place from December 24, 2018, to December 24, 2019. The firm is planning to distribute 35 million tokens in lots of five million, each with a starting price of $0.10 per token in the first lot. It also claims to be ready to release more than 82 million tokens to the market.

The company also specified its intention to operate and be compliant with related laws and regulations. It is planning to obtain all the necessary approvals and licenses. The firm ensures that “it is not possible to guarantee that any such license or approval will be obtained within a particular period or in all. This means that the initiatives described in this document may not be available in certain markets, or in all,” which allegedly goes against its business in the Spanish market.