Spain’s central bank, the Bank of Spain, has warned users of some actions banks can take if they detect cryptocurrency purchases. In a post published on its web page, the institution explains that traditional banks have the option of blocking these transactions if they suspect suspicious circumstances, such as those related to identity theft or money laundering.

Bank of Spain Explains Crypto Account Restrictions

The Bank of Spain has Posted an article explaining to users the potential actions commercial banks can take upon detecting a cryptocurrency-related purchase. First of all, the bank explains that according to Spanish and European supervisors, these assets are not suitable as means of payment or investment vehicles.

The bank also explains that accounts can be blocked following suspicious behavior related to identity theft. He explained:

There may be times when the bank suspects that identity theft with credential theft is taking place. There are frequent cases of fraud in which there is fraudulent access to an entity’s customer accounts after stealing their passwords from the customer, and which ends in a transfer to acquire cryptocurrencies.

This could trigger built-in alarms in the banking system and prompt the aforementioned blockage to protect the customer.


money laundering

However, there are other reasons that may lead to transaction restriction. The post goes on to explain that clues linking traded funds with money laundering can also cause a cryptocurrency purchase transaction to be blocked. In this sense, the bank clarified:

It may also happen that the bank classifies this type of transaction as high risk and decides to require additional checks, such as making a phone call or asking you to come to a branch.

Banks must comply with a series of laws that prevent them from carrying out these types of transactions which could be used to launder funds or could be used to finance terrorism all over the world. However, it was also explained that banks cannot do this without maintaining a line of communication with the affected user, giving a general reason for blocking the transaction. In some cases, users may be asked to visit a bank branch. However, the post says banks must remain flexible depending on the customer’s health condition and distance from their residence.

Europe is currently drafting MiCA, the Regulatory Framework for Crypto Asset Markets, which will better clarify the attributions of each of the organizations regarding cryptocurrency and its associated players.

What do you think of the Bank of Spain’s warning on cryptocurrency purchases? Tell us in the comments section below.

sergio@bitcoin.com'

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price surge happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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