August 10, 2022

The Spanish ombudsman has been receiving complaints about cryptocurrency and how some Spanish citizens investing 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. In the same way, the EU has also warned about these assets recently.

Spanish Ombudsman Gives His Take on Crypto

Angel Gabilondo, the Spanish ombudsman, has given his take regarding cryptocurrencies and the effects they have on citizens investing in some of 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.

The report states:

Cryptocurrency exchange companies or platforms are not regulated in the legal system, are not subject to any public supervision system, nor do they benefit from deposit guarantee systems.

The affected users that sought the support of the ombudsman office were referred to a 2018 joint release issued by the Bank of Spain and the CNMV, the securities regulator in the country, that alerted about the risk of using cryptocurrency assets as investments.

The report also states that the current reclamation systems are too inefficient to offer protection to the users of financial products, something that has prompted the institutions to accelerate the creation of the Financial Customer Protection…

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