The Bank of Spain should make known, in the coming days, the necessary mechanisms for registering bitcoin exchanges (BTC) and other cryptocurrencies, as well as crypto-asset custody platforms.
The measure is framed in Law 10/2020 on Prevention of Money Laundering and Terrorism Financing. It establishes the opening of a registration process for “providers of virtual currency exchange services for fiat currency and the custody of electronic purses.”
Subsequently, the Spanish Government published Royal Decree Law 7/2021, in which the time limits were set to put the record in tune. The term is six months, started on April 29 and ends on October 29.
The decree establishes that the objective is to “improve the mechanisms for the prevention of terrorism and to improve the transparency and availability of information on the beneficial owners” of bitcoin exchanges and custody platforms.
After October, companies involved with the provision of services with cryptocurrencies, will have opportunity to register until January 29, 2022.
The law also indicates that persons who provide services of “exchange of virtual currency for legal tender” will be subject to “preventive obligations”.
Likewise, it is incorporated as «obligated subjects to the providers of electronic wallet custody services, understood as those natural or legal persons that provide safeguarding services of private cryptographic keys on behalf of their clients, for the possession, storage and transfer of virtual currencies in a manner similar to that of the custody of funds or traditional financial assets ”.
The regulations also establishes the obligatory nature of the registration of trust, which are the associations of companies that provide financial services, as well as entities of a similar nature that operate in Spanish territory.
The single registry will be connected to those of other European Union countries and will remain available to public access to information, as reported by CriptoNoticias last June.
The official provision designates the Bank of Spain as the entity in charge of supervising compliance with the obligations and conditions required by the Spanish State.
Regulations “will mean a before and after”
Experts such as the financial lawyer and founder of IcoFunding, Alejandro Gómez de la Cruz, have considered that these regulations “will represent a before and after for the providers of services related to cryptocurrencies in Spain,” as reported by CriptoNoticias.
Most analysts consider that a stricter regulation It will come as a result of the regulations. They also argue that this fact will require an important rearrangement in the operation and operation of the companies and users inside of the cryptocurrency ecosystem of Spain.
Many experts also argue that there is a “reduction in the safeguarding of privacy standards” with the single registry.
Other measures that Spain has taken on bitcoin
The European country has been taking steps to regulate bitcoin more strongly. Last July, CriptoNoticias reported the reform of the Bill Prevention and Fight against Tax Fraud.
The regulations oblige to declare the holding of cryptocurrencies in Spanish and foreign custody platforms. Self-custody purses are exempt.