Bank of Spain Warns Citizens About Unregulated Cryptocurrencies

The central bank of Spain has issued a warning to citizens cautioning them about the risks involved in transacting unregulated cryptocurrencies. The Bank of Spain published a blog post on February 8, outlining its stance on cryptocurrencies, their characteristics, and their legal status in Spain and the wider European Union.

The official warning notice was published on February 10, in which the bank underscored that Spain has not yet passed any legislation in regard to cryptocurrency. It said that crypto exchange platforms and other companies in the sector are thus neither supervised not authorized by the central bank, which makes them risky for consumers.

According to the bank, many crypto platforms don’t have the protection of national deposit guarantee systems such as Spain’s Deposit Guarantee Fund.

The notice echoes the statement of the bank’s governor, Pablo Hernández de Cos, who said that cryptocurrencies “cannot replace money and is not a means of payment or common exchange.” Spain’s market regulators also hold a cautious stance when it comes to digital assets, with the National Securities Market Commission adding 23 unauthorized forex and crypto-related entities to its warning list in January alone.

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