Home Business Central Banking Bank of Spain: Crypto Makes Consumer Rights an Impossibility

Bank of Spain: Crypto Makes Consumer Rights an Impossibility

The Bank of Spain issued a warning against trading cryptocurrencies this Monday.

In a blog posted on the central bank’s investor education page, the monetary authority noted that there are currently no laws in Spain governing cryptocurrency.

Thus, the central bank said, no trading platform or exchange offering its services to retail investors has the approval of Spanish authorities.

The blog post also highlighted dangers that investors face due to the volatility of cryptocurrency prices.

Significantly, monetary authority said that it believes that, due to the total lack of transparency surrounding the structure of cryptocurrency markets, “price formation…could be manipulated.”

In a move that is also sure to precipitate a series of taunts from the ‘crypto enthusiasts,’ the central back also said that cryptocurrency will not replace fiat currencies.

“You have probably wondered if virtual currencies can replace [fiat currency],” said the central bank. “No. These coins are not a common and generally accepted means of payment or exchange.”

Not legal tender

Highlighting the fact that it does not consider any cryptocurrency to be legal tender, the blog post also states that anyone who loses their money buying digital assets is unlikely to ever see it again.

Interestingly, the central bank also said that, if a person were to buy something with bitcoin, they would lose all of their rights as a consumer.

“In the case of acquisition of goods and services through virtual currencies,” said the central bank, “it would be impossible for any consumer to claim their rights if a problem arose with the payment or with the product purchased.”

Though Spanish authorities may not like cryptocurrencies, they are fans of income tax. And though they are yet to properly regulate the cryptocurrency market, Spaniards have to pay capital gains tax on any income they made through investing in cryptocurrency.


Please enter your comment!
Please enter your name here

Must Read

Bitgo Plans to Launch Wrapped Bitcoin on the Tron Blockchain

Members of the crypto ecosystem will soon be able to leverage WBTC via the Tron (TRX) network. Just like the tokenized BTC created using Ethereum’s ERC20...

Ethereum’s Long Term Chart Is Extremely Simple To Read

The weekly Ethereum chart, as opposed to the daily chart, is simple and concise. There are 2 simple...

US Department of Transportation Says Blockchain Has Many Applications For Unmanned Aircraft Systems (Drones)

Blockchain technology could assist with adjusting and improving current technical challenges in the expanding business of commercial drone delivery, said the US...

Security tokens, blockchain settlement draw interest from institutions: MIT Bitcoin Expo panel

Amid growing competition between providers, institutions in the traditional finance space are looking at blockchain as another way to offer value to...

Networking 2.0 at Blockchain Life 2020

Make hundreds of connections at Blockchain Life 2020 The 5th Blockchain Life 2020 returns to Moscow on April 22-23 at the unique media...