Bitcoin in Spain: cryptos become "Persona Non Grata"

17 avril 2022

Anti-crypto block – Banks in Spain can prevent their customers from carrying out certain crypto transactions. The Spanish central bank shows the muscles of the banking system, against a new finance that it does not like.

Cryptocurrencies in Spain: Banking, Blocking, and Laundering

The central bank of Spain recalled in a post of April 7, 2022, the measures that commercial banks could take against cryptocurrencies, in certain circumstances.

The commercial banks can block certain crypto transactions that would follow a suspicion of identity theft. Some criminals can indeed buy cryptocurrencies, after having stolen the password of their victims to access their bank accounts. These suspicious crypto transactions can trigger an alert which would then lead to their blocking.

Banks can also block transactions when they detect clues that would link the funds concerned to money laundering. For this type of transaction classified as "high risk", banks may carry out additional checks. They can thus “make a phone call” to their customers, or ask them to “come to the agency”.

Cryptos victims of a strict regulatory framework

While banks must thus comply with laws aimed at combating money laundering and the financing of terrorism, they cannot nevertheless block these transactions without communicating the reasons for such action to the customers concerned.

The Spanish central bank confirms, via this press release, its desire to exercise greater control over cryptocurrencies. The institution clarified in its post that the latter are neither suitable for payment nor as investment vehicles.

The Governor of the Bank of Spain, Pablo Hernandez de Cos, had also called in February 2022 for more intense surveillance of the crypto industry. He then underlined the risks that cryptocurrencies pose to investors, but also to the financial markets in general.

In fact, any centralized power over the assets of others constitutes a potential threat to freedoms. But the Spanish authorities can always cite theoretically legitimate and legal reasons to justify liberticidal measures aimed at hindering the adoption of cryptocurrencies.