The National Securities Market Commission (CNMV) warned that the organisers of the event in Madrid and its sponsors were not authorized to provide investment services or gather funds.
The CNMV stock market regulator kept a close watch on the large cryptocurrency metaverse event Mundocrypto last weekend.
The event was expected to attract around 7,000 people and the CNMV said that such gatherings are usually aimed at enticing a younger more naive crowd into crypto investing without providing full information on the risks of investment.
Mundocrypto claimed that 55,000 of its students had already become investors and sees itself as a “world leader in crypto and blockchain education”, alongside organisers claiming the show was based on introducing new trends into the sector.
Company founder Mani Thawani said the event was for educational purposes and to guide people financially.
According to the CNMV, the crypto event is on its grey list of entities that are under suspicion of raising funds and providing services without the required permits.
Investments using cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have boomed over the last few years across the growing and emerging market.
However, families have been voicing their concerns surrounding cryptocurrency academies influencing and brainwashing adolescents into spending money on courses with the view to make large profits and becoming wealthy.
Recently, the German financial regulator BaFin updated its online warning on investing in digital currencies stating there will be “no protection covering customer losses” because “such systems do not exist for crypto assets”.
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