Bitcoin, Economy, News & Updates

Spain’s crypto warning was meant ‘to scare’ Tesla-like Bitcoin investors

The latest report alleges that the top Spanish financial markets regulator and the country’s central bank may have published their newest warning regarding the “dangers” of crypto investment to scare companies away from following Tesla’s lead going into Bitcoin (BTC) buying.

Beginning this week, the Banco de España (Bank of Spain) and the regulatory National Securities Market Commission (CNMV) declared a collective statement, doubling down on a 2018 warning about the “volatility” of crypto. In their newest announcement, the parties issued what media outlet El Español termed a “forceful alert.”

The collective statement remarked on crypto’s “high risk” nature, calling it “very volatile” and adding that cryptoassets were “not suitable for small-scale savers.”

The media outlet cites that more prominent companies looking for a hedge were likely the central bank and the CNMV’s principal target with the warning, which came hot on the heels of Tesla’s ground-breaking BTC announcement.

The media outlet cited an unnamed crypto investment manager as saying that, although the warning was apparently targetted at small-scale retail investors, it was meant as “a wake-up call for institutions and companies,” and threw up an “insurmountable wall” for any national firm that wanted to go the Tesla way on BTC.

And other experts chimed in, with one alleging that it would not be Spain’s answer to Wall Street’s blue-chip corporations, which would lead the charge on BTC investment.

Jorge Soriano, the CEO and co-founder of Spanish crypto outfit Criptan, declared that family offices might first seek to “invest part of their assets” in crypto – although he opined that the change would take place “sooner than we think.”

El Español pointed out that Spanish law does not presently forbid companies from buying crypto – even if publically traded entities would have to change their statute books before initiating a purchase.

That stated, crypto broker eToro’s Spanish lead Javier Molina offered a “much more cautious” assessment, claiming that larger companies will not flood to crypto “because we are light years away” from the United States, where Tesla’s BTC move was preceded by activities from Square and MicroStrategy, smaller companies who arguably paved the way for the auto giant’s crypto decision.

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