The authorities estimate that the new rules will be ready by the second semester of 2020.

The Ministry of Economic Affairs and Digital Transformation in Spain has updated the control measures for companies that operate offering safeguard services and exchanges with cryptocurrencies. Through a preliminary bill, last June 12th, the government entity included an additional set of measures that will establish more controls over crypto operations in the country.

According to the announcement about these new measures, all the companies that use this type of assets to conduct business will be required to comply with a series of regulations that seek to prevent the use of cryptocurrencies for illegal acts. Some of the acts that the government wants to avoid are terrorist financing and money laundering.

Once these measures come into effect, all crypto companies operating in Spain must be registered with the authorities and explain their operations through the supervision established by law. The report detailed that one of the main control measures that will be under the supervision of the Ministry is the creation of a unique registration system, which will serve as an advanced identification system.

Regarding the aforementioned registration system, the report on the measures detailed that it will serve to store information on the holders of the company, institution, or organization that is within the commercial registry of Spain.

This system will also require cryptocurrency companies to enter the trust register. This registry keeps a list of entities that provide financial services in the European country and also includes many other companies that conduct similar businesses.

This new registry of companies that operate with cryptocurrencies in Spain will be freely accessible to those who want to have information about it. Besides, this data will be part of a single list of companies that provide commercial and financial services in all countries belonging to the European Union (EU).

Among the main mandatory measures that the Ministry will request for registration, it highlights that crypto companies will have to provide information that will serve as a support for the identification system. All the companies that make business with other legal entities will have to meet this requirement.

The Spanish authorities publicly consulted the instrument of law as a requirement for approval. The Commission for the Prevention of Money Laundering and Monetary Offenses prepared a report on the concept, which is the entity that oversees financial actions in Spain and prevents certain crimes.

Although the exact date for the approval of the law was not specified, the authorities plan these additions to the law for the middle of the second semester of 2020. In this way, the law will be ready very soon.

This new set of rules can establish certain drawbacks for cryptocurrency companies operating in the country. Especially, these new rules can generate problems for the industry since it could trigger more controls in the future, which may limit the scope of business.

As several reports on crypto-companies in Europe detailed that, currently, according to the “Guide to Crypto Companies in Spain 2020”, there are about 75 organizations that will have significant commercial growth in the coming years.

By María Rodríguez


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