Spain’s Central Bank Issues A Warning To Citizens For Lack Of Crypto Regulation

The central bank in Spain has issued a warning to its citizens and customers of the risks of crypto transactions with unregulated cryptocurrencies. According to the issued notice that is analyzing further in today’s blockchain news, the bank outlined their stance on crypto and their legal status in Spain.

Both of the documents show that Spain still hasn’t passed any law regarding cryptocurrency and that all of the exchange platforms are not authorized or supervised by the central bank. All of the crypto trading platforms also don’t have the protections of the national deposit guarantee systems such as the one that the central bank has- Deposit Guarantee Fund of Spain.

The Central Bank also made clear that no state has yet conferred the exact legal status on the crypto assets but the governor Pablo Hernandez de Cos, said that crypto ‘’cannot replace money and is not a means of payment or common exchange.’’

The governor continued to explain saying that the term ‘’cryptocurrency’’ is too ‘’equivocal’’ and should be replaced with the term ‘’virtual currency.’’ The bank quoted a 2015 directive that shows that crypto is perceived as a digital representation of value without an authoritative issuance and also that crypto cannot be exchanged and transacted between legal entities.

Spain’s ruling party, Partido Popular (PP) said that it was working to create a draft bill on crypto regulation aiming to provide some degree of security for the investors and even claimed that the party is considering tax cuts for domestic blockchain innovation.

The regulators in the country still have a cautious stance after 23 unauthorized crypto-related entities joined the National Securities Market Commission List last month.