The Spanish Ombudsman has received complaints about cryptocurrency and how some Spanish citizens who invest in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. Similarly, the EU has: […]
The Spanish Ombudsman has received complaints about cryptocurrency and how some Spanish citizens who invest in these vehicles have lost everything. In his annual report, Angel Gabilondo recognized the rise of cryptocurrencies as a new problem due to the little or no regulation crypto sees in the country. Similarly, the EU has also recently warned about these assets.
Spanish ombudsman gives his view on crypto
Angel Gabilondo, the Spanish ombudsman, has shared his views on cryptocurrencies and the effects they have on citizens who invest in some of these projects. Gabilondo said in his annual report that cryptocurrencies have become “a new problem” over the course of the year under review, with many people losing all of their invested money.
The report states:
Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public oversight system, nor do they benefit from deposit guarantee systems.
Affected users who sought the ombudsman’s support were referred to a 2018 joint release issued by the Bank of Spain and the CNMV, the country’s securities regulator, which warned of the risk of using cryptocurrency assets as investments.
The report also argues that current clawback systems are too inefficient to protect users of financial products, prompting the institutions to accelerate the establishment of the Netherlands Authority for the Financial Protection of Customers, aimed at helping customers in difficulties with Financial Institutions. The proposal was made last year and the law to bolster its creation will be published in May, according to local sources.
Europe also warns against cryptocurrencies
This negative view of crypto assets is shared by several European institutions that have recently warned against the use of cryptocurrencies. Just last week, the EU’s supervisory authorities issued a statement explaining that cryptocurrencies “are not suitable for most retail consumers as an investment or as a means of payment or exchange”. In addition, the warning also informs that “consumers face the very real possibility of losing all of their invested money if they buy these assets.”
However, European users have yet to wait for the Markets in Crypto Assets (MiCA) bill to be passed in the future to get a clear picture of the future of cryptocurrencies and their regulation on the continent.
What do you think of the response the ombudsman has given to cryptocurrency investors in Spain? Tell us in the comments below.