We offer specialized advice based on the current regulatory framework, adapting to each specific case and in accordance
to the evolution of both this technology and current standards.
TYPES OF BITCOIN SCAM
Pump and dump scam
Scammers choose a currency, then artificially inflate its price by making recommendations based on false, misleading or exaggerated claims. Then, as soon as the share price rises enough, the promoters sell the shares at high prices resulting in further price declines and losses among investors.
There is no doubt that the most effective way to obtain cryptocurrency illicitly is through the use of malware. Cryptocurrencies seem to be here to stay with us, and cybercriminals want to profit from their growing use. Recently, a security company has discovered a new virus that has been developed with the aim of bleeding and emptying virtual currency accounts.
Fake exchange houses
Bitcoins and other cryptocurrencies are purchased in exchange houses called “exchanges.” We must pay attention that we are dealing with a true “exchanges” and not a false one.
Fake cryptocurrency exchange
Cryptocurrency exchanges offer an important platform to buy and trade digital assets. Now, let’s not forget that a significant number of these exchanges remain unregulated and are susceptible to scams.
As with many scams, Ponzi scheme promoters use the latest technology to attract investors and give their scheme the promise of high returns.
Are cryptocurrencies an investment product?
Indeed, cryptocurrencies, in addition to being a digital currency, are also an investment product. Now, it is an extremely volatile product. People invest in cryptocurrencies -especially Bitcoin-, in a kind of gambling addiction, betting that the value will increase over time; However, there is no guarantee that it will have any future value.
How do cryptocurrency transactions materialize?
Through blockchain technology where authenticity or certainty is not verified or collated by a third party but by the network of nodes (computers connected to the network) that participates in the blockchain. The blocks of the chain contain encoded information of a transaction on the network and, when intertwined, enable the transfer of data with sufficiently secure encryption through the use of cryptography.
Is this technology regulated in Spain?
Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism, in its last update of April 28, 2021, refers to virtual currencies, defining them as: That digital representation of value not issued
or guaranteed by a Central Bank or public authority, not necessarily associated with a legally established currency and which does not have the legal status of currency or money, but which is accepted as a medium of exchange and can be transferred, stored or negotiated electronically.
Likewise, in accordance with this Law, the exchange of virtual currency for fiduciary currency will be understood as the purchase and sale of virtual currencies through the delivery or receipt of euros or any other foreign currency of legal tender or electronic money accepted as a means of payment in the country. in which it was issued.
Likewise, in accordance with the aforementioned Law, electronic wallet custody service providers will be understood as those individuals or entities that provide safeguarding or custody services for private cryptographic keys on behalf of their clients for the holding, storage and transfer. of virtual currencies.
How can you acquire bitcoins?
Fundamentally these are the ways to acquire bitcoins:
- buying them
- on a bitcoin exchange
- exchanging them
- accepting them as payment for goods or services
- mining them.
What problems are there around cryptocurrencies?
Mainly anonymity, so they are relatively frequently used for activities such as money laundering, online drug purchases, sale of stolen goods, pornography, etc.
Can bitcoin accounts be tracked?
The decentralized nature of bitcoin, where the authenticity or certainty is not verified or collated by a third party but by the network of nodes, makes it more arduous and complex for the Security Forces to obtain information, mainly due to the lack of central servers or financial entities to those who address a request.
Can an exchange with bitcoins be reversed?
No, transactions made with bitcoins cannot be reversed, they can only be refunded by the person or company that received the payment.