September 28, 2022
  • September 28, 2022

Spanish market regulator warns of cryptocurrency event

By on August 26, 2022 0

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MADRID — Spanish financial authorities plan to keep a close eye on a major cryptocurrency metaverse event in Madrid this weekend.

Stock exchange regulator CNMV warned this week that neither the event organizers Mundocrypto nor the sponsors have permission to provide investment services or raise funds.

Saturday’s event at a Madrid concert hall is expected to attract 7,000 people. Spanish authorities and the CNMV claim that such gatherings are often aimed at tricking people, especially young people, into investing in cryptocurrencies without fully knowing the possible consequences.

Mundocrypto founder Mani Thawani, a Spaniard, defended the event, arguing that it is for educational purposes and to guide people financially.

Mundocrypto describes itself as “the world leader in crypto and blockchain education” and claims that 55,000 of its students have already become investors.

The CNMV claims that Mundocrypto is on its gray list of entities suspected of raising funds and providing financial services without authorization.

Organizers say the show aims to unveil new industry trends. Show business personalities and economists are also expected. Two well-known TV personalities have pulled out of the event since the market regulator’s warning.

Earlier this year, a number of families complained to authorities that another cryptocurrency academy was brainwashing their children into spending their money on courses with the promise that they would become rich.

Investments in cryptocurrencies, such as bitcoins, have exploded in recent years, but in several cases the currencies have rapidly lost value and people are investing in what is an unregulated market.