The Bank of Spain, through its Financial Stability Report, pointed out that as crypto assets become more and more popular, they could become a big problem for the financial system.
According to the report of the Spanish body, the gross purchases in cryptoactives that during the year 2021 represented 4% of the Spanish GDPif they continue to grow, in addition to their interrelation with the traditional financial system, they could end up posing a “systemic” risk.
“The increase in the volume of crypto assets traded and the interconnections with traditional financial markets could pose risks to financial stability”they pointed out.
In this sense, it is the increasing volume of liquidity that moves in this unregulated world that is behind the warning from the Bank of Spain.
That said, it should be noted that the report also pointed out the lack of its own regulation in Spain on crypto assets, and that the Bank of Spain does not have “regulatory powers” or “supervisors” on this market, except for operating the registry of service providers for exchanging virtual currency for fiduciary currency and custody of electronic purses, or in the case of the CNMV, and only recently, the approval of the circular on the advertising of those crypto assets that are presented as an investment object.
Other report data
In said report, which also addressed other topics of the Spanish economy, they noted that the value of the global cryptoactive market is still limited, but with exponential growth.
On the other hand, crypto assets such as Bitcoin, Ether, Ada, etc, rated them unsupported and represent 84% of the market valuewhich contributes to its high volatility.
By last, Regarding illicit activities, they highlighted that there is a certain proportion of operations with cryptocurrencies that have these activities as their purpose, and in the case of Spain it would be 1%, while at the level of illicit activities identified in Europe they would be the scams with 58%, and theft of funds with 32%, which would concentrate most of the operations.
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