Spain Still Far Away From Crypto Regulation

Wilfred Michael 

Wilfred Michael

News reporter

11 February 2019,
18:23
Spain Still Far Away From Crypto Regulation

A new notice released by Banco De España (Bank of Spain) on February 10, suggests that the country is not ready to regulate the cryptocurrency industry any time soon.

The European country’s premier bank warned its citizens to be careful when transacting with cryptocurrencies, citing that its “deposit guarantee systems” do not cover such unregulated transactions.

Excluding the new form of money from such provisions mean that users cannot claim rights within the country if they encounter a problem while transacting cryptocurrencies.

Additionally, the bank notice focused on the negative issues currently facing the cryptocurrency industry such as lack of regulation, high volatility, and insufficient cybersecurity.

To further strengthen its claim that the crypto industry is unsafe for citizens, the notice emphasized that “there is no State in which any virtual currency is legal tender.”

The notice also pointed out that cryptocurrency exchanges and businesses within the country are operating freely and without the Central Bank's supervision.

Is Spain Missing Out on Crypto Innovation?

Understandably, the negative stance of the Central Bank of Spain against cryptocurrencies, as expressed by the new notice, mirrors that of several governments and banking institutions.

The difference though is that authorities in countries such as South Africa, UAE, India and many more, now realize the potential of cryptocurrencies and are working out regulatory frameworks for the industry.

Cryptocurrencies can exist as an asset class, facilitate instant and fast monetary transactions across borders and also serve as a fundraising tool for new companies.

On the regulatory front, while European countries such as Malta and Switzerland are already leading the race to dominate the industry, Spain's negative stance could see it arrive later for the crypto innovation.

Crypto startups in the country will hope that soon; authorities can spend as much time as it does on hunting down fraudulent sites to create a clear regulatory framework for the industry.

 

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