Bank of Spain, the Spanish central bank has advised users of certain steps banks could take in case they find cryptocurrency purchases. The institution posted a blog post on its website explaining that banks can block transactions in suspicious circumstances, including identity theft and money laundering.
Bank of Spain explains Crypto-Related Account Restrictions
The Bank of Spain has issued a post explaining to users the potential actions that commercial banks can take when detecting a cryptocurrency-related purchase. The bank first explains that these assets do not qualify as investment or payment vehicles, according to European and Spanish supervisors.
It also explained that account can be closed if there is suspicious activity related to identity theft. This was explained by the bank:
The bank may suspect that there is identity theft and credential theft. It is common for fraud to occur when clients have their passwords stolen from them. This leads to fraud and a transfer in order to obtain cryptocurrencies.
It could trigger alarms in the bank system, prompting the block mentioned to protect customer.
Money laundering
There are many other factors that could cause a restriction on a transaction. Further explanations are provided in the post, indicating that for example, clues that link funds transactions with money laundering could also lead to the blocking of cryptocurrency purchase transactions. The bank explained that this is how it works:
Sometimes, the bank may consider this operation high-risk and ask you to visit the branch or make a call.
The laws required banks to follow to prevent the laundering of funds and financing terrorism worldwide. It was explained, however, that this cannot be done by banks without keeping a direct line of communication to the user affected and giving an explanation for the blocking of the transaction. Sometimes, users might be required to go into a branch of a bank. The post states that banks will be flexible depending upon the customers’ health and distance.
Europe is currently working on MiCA (Markets in Crypto Assets) regulatory framework that will clarify each organization’s attributions regarding crypto and the associated actors.
How do you feel about the Bank of Spain’s warning regarding cryptocurrency purchases? Leave a comment below.
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