The social and political climate towards online-pawning services is low, because it is not a high-level economic market and it is especially susceptible to cross the line to an illegal market.
Following the principle of technological neutrality, the same regulatory principles should apply regardless of the technology used. We consider that Spain has an old-fashioned regulation related to pawnshops, both traditional as well as online pawnshops.
Excluding some special pawnbroker institutions, such as the “Montes de Piedad”, the main legal text is the Royal Decree of Loan Houses and Similar Establishments of 12 June 1909.
The most important requirements included in it are the following: i) an administrative authorisation; ii) a security lodged deposited in cash in a public agency (Pts); iii) 12% annual interest as limit; iv) forbidden another kind of operations; v) operations log.
In addition, special provisions have been developed in order to audit and inspect the operations with objects composed by precious metals to avoid the crimes of receiving of stolen goods, tax avoidance and evasion.
The online pawning market is a relatively small market.