Spanish ombudsman Angel Gabilondo received numerous complaints regarding cryptocurrency. He also noted how many Spanish citizens have lost their entire savings by investing in such vehicles. Angel Gabilondo acknowledged that the rise in cryptocurrencies is a problem because of the lack or very little regulation they have. The EU also recently warned about these assets.
The Spanish Ombudsman gives his take on crypto
Angel Gabilondo (Spanish ombudsman) has shared his views on cryptocurrencies and their impact on people investing in these projects. Gabilondo said in his yearly report that cryptocurrencies have become “a new problem” during the year examined, with many people having lost all of their funds invested.
According to the report:
The platforms and companies that trade in cryptocurrency are not covered by the law, they are not subjected to public oversight, do not receive deposit guarantees, or are not under any legal regulation.
A 2018 joint release by the Bank of Spain (the securities regulator in Spain) alerted users about the risks of investing with cryptocurrency assets.
According to the report, the existing reclamation systems do not offer sufficient protection for users of financial products. This has led to institutions creating the Financial Customer Protection Authority to assist customers who are in financial trouble. Local sources say that the proposal was made in January and that the law will be published to cement its establishment in May.
Europe Warns Against Cryptocurrencies
Numerous European institutions also have criticized crypto assets. Just last week, the EU supervisory authorities issued a statement explaining that cryptocurrencies “are not suited for most retail consumers as an investment or as a means of payment or exchange.” Furthermore, the warning also informs that “consumers face the very real possibility of losing all their invested money if they buy these assets.”
To get a better understanding of the future and regulation of cryptocurrency on Europe, European users will need to wait for the Markets in Crypto Assets law proposal (MiCA).
How do you feel about the Spanish ombudsman’s answer to crypto investors? Leave a comment below.
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