The PSOE wants to take advantage of the processing in Congress of the new regulations on crypto assets to change a large part of the catalog of fines, which will be more lax for individuals and stricter for companies. It will do so through several amendments presented in Congress whose objective is, according to what it indicates, to adapt the punishments to European regulations.
This initiative comes at a sensitive time for cryptocurrencies, whose reputation has been seriously damaged by the fall of FTX. Added to the sharp devaluation of cryptocurrencies such as bitcoin or ethereum are the cases of investors who have not been able to withdraw their funds on brokerage platforms.
The fines in question have been adjusted to reach in some cases up to 12.5% of the income of the infringing companies, although they also include discounts for individuals, which in the most extreme situations will go from 15 million euros to 2, 5 million.
The new sanctioning regime appears in several amendments presented by the PSOE to the draft Law on Securities Markets and Investment Services, which introduces figures such as the SPAC in Spain (a listed vehicle used to merge with a conventional company and put it to be quoted by fast track).
The most serious sanctions continue to punish cryptocurrency management companies with up to 15 million euros, but reduce the punishment for individuals to 2.5 million. However, the winnings will be forced to be returned, offenders will be publicized and they will be removed from the management bodies for a maximum of ten years.
The fines for behaviors that endanger the operation of the market will be a maximum of 700,000 euros for individuals, compared to the previous one million euros. On the other hand, they will be hardened in the case of companies, which can be punished with 5 million euros or 12.5% of their income, depending on which is the higher figure. Previously, the percentage was set at 10% of income.
In serious offences, a public statement is added so that society as a whole knows the name of the natural or legal person who committed the offence. This practice was already used in the rest of the catalog of sanctions.
The law maintains the CNMV as the reference body to establish fines and supervise the activity of the markets, although it will give, if another of the PSOE amendments prospers, some prominence to the Bank of Spain. This institution will exercise the functions of supervision, inspection and sanction in all that refers to the obligations of issuances of products linked to cryptocurrencies. The EU is still pending approval of its regulation on cryptocurrencies
