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Risk warning

Information on the risks of investing in cryptoassets

From BITSA we want to be transparent and inform you about the risks of buying cryptocurrencies so that you can make an informed decision, being aware of the risks of this investment. The offer of cryptoassets is regulated by Circular 1/2022 of 10 January from the National Securities Market Commission. Therefore, if you decide to acquire any cryptocurrency through us, you must take the following risks into account.

High risk investment product

  • The value of investments and the returns obtained may fluctuate significantly up and down, and the entire amount invested may be lost.
  • Investments in early-stage projects involve a high level of risk, so it is essential to properly understand the project’s business model.
  • The cryptoassets offered in the crypto module are not covered by customer-protection mechanisms such as the Deposit Guarantee Fund or the Investor Guarantee Fund.
  • Cryptoasset prices are formed without mechanisms that ensure their proper formation, unlike those present in regulated securities markets.
  • Many cryptoassets may lack the liquidity needed to unwind an investment without significant losses, since their circulation among both retail and professional investors can be very limited.

Risks inherent to the technology

  • Distributed-ledger technologies are still at an early stage of maturity; many networks have been created only recently, so they may be insufficiently tested and contain significant operational or security flaws.
  • Transaction records in distributed-ledger networks rely on consensus protocols that may be vulnerable to attacks attempting to modify the ledger; if successful, there would be no alternative record to support those transactions or the balances of the public keys, and all cryptoassets could be lost.
  • The anonymity features of cryptoassets make them a target for cybercriminals; if credentials or private keys are stolen, the assets can be transferred to addresses that hinder or prevent recovery, leading to total loss of the investment.
  • Custody of crypto-assets is a major responsibility because they can be entirely lost if private keys are stolen or misplaced. Funds are held in a Pressbroker SL account with Payward Trading Ltd., c/o SHRM Trustees (BVI) Limited, Trinity Chambers, Ora et Labora Building, Road Town, Tortola, VG1110, British Virgin Islands. You can view their terms of service at the following website. The Italian branch of Payward Europe Solutions, Ltd. is registered with the Organismo Agenti e Mediatori ("OAM") under registration number PSV35.

Legal risks

  • Acceptance of cryptoassets as a means of exchange is still very limited and there is no legal obligation to accept them.
  • If the service provider is not located in an EU country, resolving any dispute could be costly and fall outside the jurisdiction of Spanish authorities. The service provider, Payward Europe Solutions, Ltd., is located in Italy and subject to Italian and European regulations.
  • Crypto-assets and private keys are not directly held by investors. They are stored in an account held by Pressbroker SL with Payward Trading Ltd. The investor retains economic ownership (may share in gains and losses, or buy and sell at will).
  • If you have any doubts after reading this information, you can obtain more details by contacting us at soporte@bitsacard.com.