The Central Bank of Spain reminded of the risks connected with operations with unregulated cryptos. The document outlines the entity’s attitude as for cryptos, their specifications, legal status in Spain and in the EU as well.
The document published on February 10 covers that Spain is yet to create the legal framework for the crypto industry, which means that trading platforms and companies dealing with cryptocurrencies are not supervised and authorized by the bank. Moreover, it was also stated that exchanges have also not implemented national deposit guarantee systems, like the Deposit Guarantee Fund.
If crypto was used to buy goods and services, customers will hardly be able to claim their rights in case of any troubles, the authority noted.
Since cryptos have not been recognized as a legal asset class by any country, the Central Bank sticks to the position of its governor. Earlier, Pablo Hernandez de Cos determined that cryptos are unable to substitute fiats and cannot be a means of payment.
Taking notable crypto market hikes, the Bank once again stresses the high volatility of such assets, security risks and yet poorly developed consumer rights in the industry.
For reference, the Spanish government reported last December that it would introduce a draft bill to regulate crypto and blockchain. This may ensure some certainty for investors, but market regulators are still holding a cautious approach.