In a press release published by Cotizalia, It was announced that the General Directorate of Insurance and Pension Funds (DGSFP) attached to the Ministry of Economic Affairs and Digital Transformation, requires insurers to report the possession of Bitcoin among their assets and they must also justify why they have them.
The news outlet had access to a letter that was issued from that regulatory entity, with special emphasis on the area of balance sheet analysis and risk analysis.
The information medium that The General Directorate of Insurance and Pension Funds justifies its requirement in separate communications from the National Securities Market Commission and the Bank of Spain (CNMVB) in which the volatility generated by investment in cryptocurrencies is noteds, for which, whether insurers are having investment positions in these cryptocurrencies is a matter subject to supervision and regulation.
This also corresponds to a historical theme, multiple companies throughout the history of pension funds have made “investments” that, without proper regulation and supervision, has ended in failures that result in the loss of retiree savings.
In this sense, for some, it is commendable that the DGSFP assumes its supervisory role early, so that, Although investing in Bitcoin is currently considered profitable, the reality is that being such a volatile crypto asset, precautionary measures must be extreme.
As of this date but in 2020 before the pandemic began, the BTC was trading at just over USD 8,345, falling back in the following days representing significant losses, to the point that it was trading at just over USD 5,050 according to data provided. by CoinMarketCap. Since then, the bull run has not stopped, however, it is still a risky investment.
Therefore, Sergio Álvarez -in charge of the governing body-, In the communication sent, it gives insurance and reinsurance entities a period of 15 days to report whether or not they directly or indirectly hold positions in cryptocurrencies from the close of the financial year 2020 to February 28 of this year.
If such positions exist, The representative of the General Directorate of Insurance and Pension Funds requires a justification that allows demonstrating that such events comply with the investment regulations according to the organization, supervision and solvency of insurers and reinsurers.
In any case, the DGSFP is apparently fulfilling a supervisory role that at least, in principle, is a sign of interest by the authorities for the investments made with the pensioners’ money.
The news is still in development and it is unknown for now if some of the exhorted have indicated having cryptographic assets among their portfolios, so this news will be updated once more information is available in this regard.