Discover the differences between regulated and unregulated tokenization with a focus on CNMV and compliance. Learn what each option involves

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What is the difference between regulated and unregulated tokenization?

La Tokenization is a technology that allows traditional assets to be transformed into digital tokens on blockchain.

But not all tokenizations are the same: there are important differences between regulated tokenization And the not regulated.

Understanding these differences is essential for companies, investors and developers who want to issue or trade tokens.

In this article, we explain what distinguishes the two, with special attention to legal, regulatory and technical aspects, including the role of CNMV and the importance of compliance.

What is regulated tokenization?

La regulated tokenization implies that the tokens issued comply with current financial regulations, especially the laws and regulations of the securities markets in Spain and Europe.

These tokens usually represent financial instruments and, therefore, are subject to supervision and authorization by bodies such as the CNMV (National Securities Market Commission).

Key Features of Regulated Tokenization

  • Strict legal compliance: Regulatory processes must be followed, including authorizations and registration.
  • Supervision: The CNMV or other regulators oversee the issuance and negotiation.
  • Investor protection: transparency, information and protection standards apply.
  • Formal registration: Responsible entities, such as the ERIR, keep official records.
  • Use in authorized secondary markets: they are traded on regulated platforms.

What is unregulated tokenization?

La unregulated tokenization corresponds to tokens that are not subject to financial supervision or do not represent financial instruments under the legislation.

Typical examples include utility tokens or certain NFTs that don't confer financial rights.

Key Features of Unregulated Tokenization

  • Without direct supervision: there is no specific control by bodies such as the CNMV.
  • Lower legal requirements: No formal authorization or registration required.
  • Greater flexibility: they are issued and traded on unregulated markets, including decentralized platforms.
  • Higher risks: less protection for investors and possible legal uncertainty.
  • Suitable for non-financial cases: utility, access to services or digital representations without financial rights.

Key Differences Between Regulated and Unregulated Tokenization

Regulated tokenization is characterized by strict supervision by bodies such as the CNMV, high legal requirements, investor protection through specific regulations, formal registration with official entities such as the ERIR and trading in authorized markets.

In contrast, unregulated tokenization is not directly supervised by financial authorities, has much more flexible legal requirements, less protection for investors, requires no formal registration, and its tokens are often traded on unregulated or decentralized platforms.

Why is compliance important in regulated tokenization?

El compliance Regulatory compliance is key to avoiding sanctions, ensuring transparency and protecting investors. In regulated tokenization, companies must implement AML/KYC processes, audits, and continuous reporting to comply with European and Spanish legislation.

Failure to meet these requirements may result in fines, nullity of emissions, or loss of trust.

What option to choose to issue tokens?

The decision depends on the purpose of the token and the level of risk you are willing to assume.

  • If the token represents financial rights or investment, regulated tokenization is mandatory to operate legally and attract institutional investors.
  • If the token is merely functional, accessible or collectible, unregulated tokenization may be sufficient, but always considering the current legal framework.

Conclusion

Understand the difference between regulated and unregulated tokenization is vital for designing blockchain projects that comply with the law and manage risks properly.

The oversight of CNMV and the implementation of compliance set the standard for issuing financial tokens in Spain, while unregulated tokens offer greater flexibility but also greater uncertainty.

If you want to issue tokens in Spain, carefully evaluate the legal framework and category of your token to choose the right path and ensure the success of your project.

Unknown Gravity

About the author

High-performance consulting specialized in Blockchain. Experts in tokenization.

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