Spanish Lawmakers Want Cryptoassets to Carry ‘Traffic Light’ Risk Warnings

Key Points

1. A group of Spanish MPs, Sumar, wants the National Securities Market Commission (CNMV) to implement a 'traffic light' system for cryptoasset risk warnings.

2. The lawmakers suggest renaming cryptoassets like Bitcoin (BTC) as 'crypto bets' or 'unbacked assets' to reflect their speculative nature and lack of underlying value.

3. The proposed system would use color codes: an orange light for 'unsupervised' coins with high risk levels.

4. Sumar also wants to restrict access to AI-powered trading platforms and require banks and exchanges to display prominent warnings about crypto risks.

5. The group argues that cryptoassets represent 'extreme forms of fictitious capital' and should be more strictly regulated to protect investors.