Angel Gabilondo acknowledged that the rise in cryptocurrencies is a problem because of the lack of regulation they have in Spain. Similar warnings were issued by the EU recently about these assets.
The Spanish Ombudsman gives his take on crypto
Angel Gabilondo, the Spanish Ombudsman, has shared his views on cryptocurrencies and their impact on citizens who invest in these projects. Gabilondo stated in his annual report that cryptocurrencies had become "a new issue" during the year, with many people losing all their invested funds.
The report states
The platforms and companies that trade in cryptocurrency are not regulated by the law. They are not subject to any government supervision, do not receive deposit guarantee systems, and are not subjected to any regulatory system.
The ombudsman office referred the affected users to a 2018 joint release by the Bank of Spain (the securities regulator in Spain) that warned about the danger of investing in cryptocurrency assets.
According to the report, the existing reclamation systems are inefficient and do not offer sufficient protection for users of financial products. This has prompted institutions to create the Financial Customer Protection Authority to assist customers who have problems with financial institutions. According to local, the proposal was submitted last year. The law to cement its creation is expected to be published in May.
Europe also warns against cryptocurrencies
Many European institutions have recently warned against the use of crypto assets. Last week, the EU supervisory authority issued a statement stating that cryptocurrencies are not suitable for most retail consumers as either an investment or a way of paying or exchanging money.
To get a clear view of the future of cryptocurrency and its regulation in Europe, European users will need to wait until the Markets in Crypto Assets law proposal is approved.