THE DAILY ENCRYPT

September 30, 2022

Spanish Authorities Warn Public Again – Cryptocurrency Purchases Can Be Blocked

Bank of Spain, the Spanish central bank has issued warnings to users about what banks can do if they discover cryptocurrency purchases. The institution posted...
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Bank of Spain, the Spanish central bank has issued warnings to users about what banks can do if they discover cryptocurrency purchases. The institution posted a blog post on its website explaining that traditional banks can block transactions if they believe there are suspicious circumstances, such as identity theft or money laundering.

Bank of Spain explains Crypto-Related Account Restrictions

The Bank of Spain has issued a post explaining to users the potential actions that commercial banks can take when detecting a cryptocurrency-related purchase. The bank first explains that these assets are not suitable as investment vehicles or payment methods according to Spanish and European supervisors.

It also explained that accounts may be blocked if they are suspicious in relation to identity theft. It explained:

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The bank may suspect that identity theft and credential theft are taking place. Fraud cases in which clients are able to fraudulently access their accounts after they have stolen their passwords, can be frequent. These cases often end in a transfer to purchase cryptocurrencies.

This could trigger alarms in the banking system that prompt the aforementioned block to safeguard the customer.

Money laundering

There are many other reasons for a transaction restriction. It also explains that information linking funds to money laundering could cause a block on a cryptocurrency purchase transaction. The bank clarified this:

Sometimes, the bank may consider this operation high-risk and ask you to visit the branch or make a call.

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Banks must follow a set of laws to prevent them from engaging in transactions that could be used to launder money or finance terrorism. It was explained that banks cannot do so without keeping in touch with affected users and giving reasons for the block. In certain cases, users might be asked to visit the bank branch. The post states that banks will be flexible depending on customer’s health and distance from home.

Europe is currently working on MiCA to clarify the attributions of all the organizations in relation to cryptocurrency and the associated actors.

Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".
Felipe Rodriguez

Felipe Rodriguez

Felipe states he has super powers, some argue that case but he does come up with some very clear predictions. Felipe is based in the US and frequently travels to Brazil where he was born. He is a journalist of the future and has a portfolio of crypto projects he has worked with. Felipe always says "The future doesn't scare me as much as the past, crypto is here to stay but only time will tell where it will take us".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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