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Calviño explores the trade to measure the impact of cryptocurrency on business

Ministry of Economy and Digital Transformation headed by the first deputy prime minister, Nadia Calvinoheld meetings with various representatives of the commercial sector to find out their specific considerations about the virtual cryptocurrency market and the possible impact on their business. At a time when the crypto industry is at a turning point, after the collapse of the platform FTX which has turned the blockchain ecosystem upside down, from the General Secretariat of the Ministry of Finance and International Financing these contacts were promoted to exchange information with the sector and assess the possible scope of cryptocurrencies in the development of traditional trade, according to sources familiar with the talks.

Despite the fact that the president of the National Stock Market Commission, Rodrigo Buenaventura, assured last week that cryptocurrencies are “useless” as an investment and “no substance”, the Ministry of Economy ignores the “crypto winter” that the CNMV is already seeing and, on the contrary, holds meetings to monitor the market and exchange information shared by different operators. This is how sources from the department headed by Calviña tell La Información, who, however, prefer to keep a discreet position regarding the specific content of these meetings.

Cryptoactive business means from the very beginning boom care for Calviño. For months, the economic vice-president has been pressuring the Bank of Spain and the CNMV to regulate it and short the ‘crypto’ managers, even betting that Spain will pass Europe’s green light on community regulation, christened as slug, whose processing is progressing late. The EU Council gave the go-ahead last October, and a vote in the European Parliament was scheduled for November last year, but was finally pushed back to February 2023.

Calviño conveyed to the supervisors the urgency of creating a regulatory framework, even if temporary, at the peak of demand for financial services revolving around these digital assets, in response, in large part, to the concerns they have experienced vestibule banking. But that decree has not arrived yet. For now, the Council of Ministers has given the green light to the Financial Clients’ Defense Authority, a body created to resolve claims between clients and banks, but which goes beyond traditional frameworks and extends the protection of financial service users to new unregulated products offered by banks that go beyond the parameters of the historical services of those entities because they are part of the universe of fintech and crypto assets.

Financial organizations have long warned about the risks of investing in crypto-assets, and in a joint statement published last March, the BdE, the CNMV and the Directorate-General for Insurance of the Ministry of Economy came together to warn that they are not suitable as an investment or as a means of payment or exchange for most retail consumers . The Governor of the Bank of Spain himself, Pablo Hernandez de Coshe recently stated, after the FTX bankruptcy, that he hoped “it will help make citizens aware of the risks” associated with these products.

Pablo Hernández de Cos, Bank of Spain

with omens cryptocrash In the background, sponsored by chain bankruptcies and falling prices, this phenomenon remains one of the main concerns of the Ministry of Economy, and Calviño wants to have all the information available ‘at street level’ to measure the effects and impacts on the economies as a whole, despite the fact that cryptocurrencies barely penetrated into traditional sectors. To do this, he implements these contacts with the commercial sector which are defined by his department as “market surveillance” and are found in the usual surveys with different economic entities.

The registry of cryptocurrency providers of the Bank of Spaincreated last October for virtual currency exchange service providers for fiat currency and custody of electronic wallets, accumulated at the end of last November 49 companies, while about fifty requests were rejected, because they did not attach the necessary documentation or because they did not meet the conditions established by the rulebook. By that date, about 80 were in the process of being studied, according to supervisors. Four crypto providers have been registered in recent weeks, three of them after the bankruptcy of the FTX platform.

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