Unión Progreso y Democracia (UPyD) of Spain asks for Bitcoin Regulations

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Unión Progreso y Democracia (UPyD) of Spain asks for Bitcoin Regulations

Unión Progreso y Democracia (UPyD) of Spain has submitted a proposal to the country’s Congress wherein it outlines the requirements for Bitcoin regulation. The political party which is though liberal in ideology, calls out for stricter control measures to be placed on the technology in a bid to improve security and prevent fraudulent and criminal activity.

The document submitted by the political party says that Bitcoin should not remain in a legal vacuum, without the appropriate supervision as it believes that there are currently 40,000 Bitcoin users in Spain, and that while this small user base doesn’t pose a risk to the larger economy today, measures should be enacted now before it becomes more widespread.

This is not the first time that some political party is asking for regulation; similar voices have come in several other countries. UPyD claims that the lack of regulation could impact central banks in its filing as it feels given the shared characteristics with other payment systems, incidents could be linked to the lack of intervention by public banking authorities.

The party in document has tried to touch upon various issues as well; for instance, it talks about the European Banking Authority (EBA) which identified more than 70 risks that affect users, market participants, and financial integrity – by facilitating money laundering and other financial crimes – existing payment systems and the regulating authorities.

Bitcoin Could be used for Money Laundering and Criminal Activities

ForexMinute had then reported that the EBA had then warned the EU members to be careful of Bitcoin. Now, the party says that the current document is an addition to what the EBA’s call for short-term regulatory measures was. According to them the suggested regulation will discuss the issue in Congress on 30th January.

Nonetheless, the document submitted by the UPyD cites the European Central Bank’s Virtual Currency Schemes report that held that Bitcoin cannot be considered a form of digital money and as such cannot be subjected to specific legislation. This has been a thought line among legislators almost everywhere and that is why they look for a separate law to deal with Bitcoin.

Also, the report though cites the various advantages of Bitcoin; for instance it says that their decentralized, cryptographic and anonymous natures are favorable to its users, it asks for regulation. The political party says that Bitcoin is inherently risky as users can be led astray by criminals involved in illegal activities or money laundering.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com