Spain prepares registration for bitcoin exchanges and escrow platforms

The Bank of Spain should announce, in the coming days, the necessary mechanisms for the registration of bitcoin (BTC) exchanges and other cryptocurrencies, as well as crypto-asset custody platforms.

The measure is framed in Law 10/2020

on the Prevention of Money Laundering and Terrorist Financing. It establishes the opening of a registration process for “providers of services of exchange of virtual currency for fiat currency and custody of electronic wallets”.

Subsequently, the Spanish government publishedRoyal Decree Law 7/2021

, which set the timeframe for setting up the registry. The deadline is six months, which began on April 29th and ends on October 29th.

The decree states that the objective is to “improve the mechanisms to prevent terrorism and improve transparency and availability of information about the real holders” of bitcoin

exchanges and custody platforms.

After October, companies involved with providing services with cryptocurrencies

will have an opportunity to register until January 29, 2022.

Stricter regulations

The law also indicates that persons providing services of “exchange of virtual currency for legal tender” will be subject to “preventive obligations”

.

It also incorporates as “obligated parties the providers of electronic wallet custody services, meaning those individuals or legal entities that provide private cryptographic key safekeeping services on behalf of their clients, for the holding, storage and transfer of virtual currencies in a manner similar to the custody of funds or traditional financial assets”.

The regulation also establishes the mandatory registration of trusts

, which are associations of companies that provide financial services, as well as entities of a similar nature operating in Spanish territory.

The single registry will be connected with those of other European Union countries and will remain available to public access of information, as reported by

CryptoNews last June. Spain prepares registration for bitcoin exchanges and escrow platforms <img width=”1024″ height=”536″ src=”https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-1024×536.png 1024w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-300×157.png 300w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-768×402.png 768w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-560×293.png 560w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-750×393.png 750w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc-1140×597.png 1140w, https://mk0criptonoticijjgfa.kinstacdn.com/wp-content/uploads/2021/08/btc.png 1200w” alt=” /> Spanish regulators are seeking more control over bitcoin companies operating in their territory. Source: elements.envato.

The official provision designates the Bank of Spain, as the body responsible for overseeing 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 mean a before and after for service providers related to cryptocurrencies in Spain”, as CriptoNoticias reviewed

.

Most analysts believe that stricter regulation will come as a result of the regulations. They also argue that this will require a major overhaul in the functioning and operation of companies and users within Spain’s cryptocurrency ecosystem.

Many experts also argue that there is a “reduction in the safeguarding of privacy standards” with the single registry.

Other measures Spain has taken on bitcoin

The European country has been taking steps to regulate bitcoin more strongly. Last July, CryptoNews reported on

the reform to the Draft Law on the Prevention and Fight against Tax Fraud.

The regulation makes it mandatory to declare the holding of cryptocurrencies in Spanish and foreign custody platforms. Self-custody wallets are exempt.