In 2018, the Bank of Spain and the CNMV warned about the alleged risks of investing in crypto assets and operating with them. However, no government controls decentralized cryptocurrencies, nor does any intermediary entity earn money from financial transactions with them.
The position of the Spanish government on cryptocurrencies is quite conservative, as they are cautious and favor the rights of consumers and investors. However, that is due precisely to the history of financial fraud during the recession.
The Spanish cannot adopt crypto assets as legal tender since their only national currency is the euro. Article 10 of Regulation (EC) No. 974/98 of the Council establishes that it is only legal tender in the European Union and the eurozone.
In 2018, the Bank of Spain and the National Securities Market Commission (CNMV) released a statement on cryptocurrencies. They warned about the alleged risks of investing in cryptocurrencies and operating them in the country. That statement merely reflects a position from the government since it is not yet an obtained rule of law.
However, blockchain technology will have many applications in the Spanish legal environment thanks to its incorruptible, public and transparent technology. The gambling industry already has a clear and more competent position on cryptocurrencies. That allows casino players to finance their games of chance with crypto assets.
Regulation of Cryptocurrencies in Spain
Although there is no clear legislation on cryptocurrencies, regulation seems to be getting closer. A growing number of MEP representatives are willing to propose cryptocurrencies as the axis of the economy of Spain. For example, María Muñoz suggested that the country become the world mecca for Bitcoin mining.
The online casino industry in Spain has been a pioneer in legalizing the sector. In 2011, the General Directorate for Gambling Regulation emerged as the regulatory agency for online games of chance. That entity is responsible for issuing and granting licenses to virtual casinos that meet some requirements.
Cryptocurrencies have the potential to change the online gambling industry, whose process has already begun. For that reason, Bitcoin casinos offer benefits that attract players from all over the world, including the Spanish.
Decentralized cryptocurrencies are not under the control of any government, and no intermediary entity earns money from financial transactions with them. Using Bitcoin is cheap, as people can make cross-border transactions for low fees.
The Security and Privacy of Bitcoin Users
As Bitcoin is part of the decentralized technology, completely encrypted transactions are part of individual records. The system will reject any attempts to tamper with the transaction history, such as data theft and replication. Besides, no authority or bank will be able to block the access of online casino players to their money.
With Bitcoin, users submit information based on encrypted e-wallet addresses created for one time. Many players are uncomfortable sharing their identity documents for fear of fraud or identity theft. For that reason, they find it more convenient to pay with cryptocurrencies.
Some regulated markets do not accept the use of bank credit cards to pay at the online casino. Bitcoin would allow those restrictions to go away depending on the jurisdiction. Although the casino and the gambler are in countries with different legislation, this does not affect the cryptocurrency.
By Alexander Salazar
