Tokenization in Spain: Getting a move on

There has been in recent days a wave of news and developments in the field of Spanish tokenization.
The government prepares the draft law on the securities market and investment services, in addition to three royal decrees for the development of this draft.
Among the changes that are being prepared, the consideration of crypto assets as financial instruments stands out. Specifically, the draft law seeks to clarify the legal treatment of crypto assets that can be considered financial instruments. The objective is to eliminate any legal doubt regarding the legality of financial instruments issued with blockchain technology, or in a broader sense, distributed ledger technologies.

This legal consideration specifically affects the assets that we tokenize in Token City and is the confirmation of the vision that the company set at the time of its launch. The news comes almost at the same time that the CNMV allows Spanish investment funds to invest in cryptocurrencies. The legal mechanism is similar to that established for investments in gold.A mutual fund cannot directly own bitcoins, just as it cannot own gold bars. The channels allowed to gain exposure to these assets are indirect: through products that replicate the movement of cryptocurrencies or baskets of cryptocurrencies. The CNMV also allows it to be done through derivatives, with some restrictions.

The legitimation of crypto assets as an investment vehicle is fantastic news for those of us dedicated to moving traditional financial assets to the digital world.
As if that were not enough, Bolsas y Mercados Españoles (BME), that is, the company in charge of managing the Spanish stock market, is launching a platform for the issuance of Security Token Offerings or STOs. Through STOs, companies can issue tokens in exchange for financing from investors. For Token City, which manages its clients' STOs through Adventurees.com, the fact that BME itself will directly compete with us is great news.
The emergence of competitors helps the sector to move towards the legal certainty that our clients need. It helps legitimize the path that pioneers like us are forging towards the tokenization of private capital in our financial system. With the step that the Spanish stock market has taken, it is even possible to visualize public capital traveling the same path.