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Registration of cryptocurrency service providers in Spain: Necessity or whim?

The Bank of Spain is, at this moment, evaluating the requests of cryptocurrency service providers that want to be part of the official registry, which could be revealed at the beginning of next year.

As we have reported in CriptoNoticias, the highest issuing entity in Spain had until October 29 to share the necessary forms for banks and exchanges to report their activities related to the emerging market.

Now, and once the period is closed, the BDE will take up to 3 months to make the pertinent considerations . It is a list of entities that operate with cryptocurrencies and that is being created in Spain in accordance with the law against money laundering and terrorist financing of that country.

Many doubts have arisen around this record, especially in what has to do with the creation of new companies related to cryptocurrencies. This, in addition to the requirements of that regulation that is presented with the intention of reducing the risks of these crimes.

CriptoNoticias consulted Enrique Palacios Rojo, communication director (CCO) and founder of the Onyze exchange, to find out his vision on these difficulties. For him, there is a “demanding” cost in the requirements necessary to detect the risk of money laundering. “They talk about technological and human resources, such as knowledge, experience and training,” he said.

The manager maintains that everything that concerns this Spanish registry makes the creation of new companies dedicated to cryptocurrency services difficult.

«New projects They will have to be previously registered to operate, which will mean a delay in their operational plans until they obtain the approval of the regulator, “he said.

Contrasts a lot with Bárbara Sanjuán, who is the lawyer of the BitBase exchange and with whom CriptoNoticias also spoke about the registry of service providers.

According to her, the list will not be obstacles to starting a business. Before, remember, “there were no references or procedures” to carry them forward, and now, the New companies “will be aware of the foundations they must follow if they intend to start in this world.”

Growth in industry

Even with the discrepancies, the two representatives of The cryptocurrency industry in Spain agree that, based on a regulation, everything related to the ecosystem will have a better development.

Palacios affirms that what the BDE is doing was something necessary “to strengthen the sector”, so it is optimistic about the months to come.

Enrique Palacios Rojo, CCO of Onyze. Source: linkedin.com

In fact, it suggests that these regulatory measures contribute to greater public trust and adoption. From his point of view, the « boom »current cryptocurrency was thanks to the institutional market share.

The growth of the cryptocurrency market would not have occurred without the arrival of regulation at a global level (FATF-FATF) and at a regional level such as in Europe with the arrival of AML5 and the announcement of MICA.

Enrique Palacios Rojo, CCO of Onyze.

San Juan , meanwhile, sees a process of “normalization” of the market, which will generate a consequent expansion of everything inherent to crypto assets in Spain, from the registration within of the BDE.

“Taking into account the numerous benefits that are hidden behind cryptocurrencies and the blockchain, it is possible to foresee their extrapolation to different fields”, commented the jurist of the exchange house.

And he recalled that before many people distrusted cryptocurrencies because they are unregulated assets.

Now there are mechanisms that defend people against possible interference and sanction businesses that do not comply with the established requirements. The fact that an institution like the Bank of Spain has inserted them in its directory is a giant step.

Bárbara Sanjuán, lawyer at BitBase. Will it affect users?

We consulted the representative of Onyze and BitBase’s lawyer about the effect of the BDE registry on consumers and users. The two resolve that there will be no negative consequences, but, on the contrary, there will be greater confidence in them to use and trade cryptocurrencies.

Bárbara Sanjuán, BitBase lawyer. / Source: BitBase.

«It will create a framework of trust for them and give them resources to protect themselves from abuse. It will oblige providers to offer a quality service with security guarantees like the rest of the financial services they acquire, “said Palacios.

And finished, for his part, Sanjuán, who stressed that Registration will allow users to know which are the companies that provide services related to cryptocurrencies, which comply with current regulations. “This fact can boost cryptocurrency operations and even help the creation of new agents,” he stressed.

What is PSAV registration?

Within the framework of Royal Decree-Law 7/2021, of April 27, a registration process for virtual asset service providers (PSAV).

This is a list of institutions that are responsible for offering virtual currency exchange services fiat money, as well as custody services that are established in Spanish territory. The registry is covered by the MICA law, a European regulation for the regulation of crypto assets and platforms related, where each country advances at its own pace.

The law established that, between September and October of this year, the BDE had to post the forms with the steps to follow to register in the supplier registry. After weeks of silence, it was not until last October 21 that the issuing entity did so.

An advance of Spain alone

The fact that Spain further the creation of said registry, makes that country is remarkably advanced, in comparison with other nations of Europe and the world, and n the regulation of bitcoin and cryptocurrencies.

As stated by the audit services firm KPMG in Spain, the Bank of Spain’s vision on cryptocurrencies has changed from 2018 to date. At that time, they argued that they had a low level of adoption, volatility and link with criminal activities.

Currently, and with the registry in full formation, Spanish regulators are adapting to changes , while Bitcoin grows more and more.

However, the firm clarifies that, even with these advances, the BDE continues to exist « skeptical positions towards more critical and analytical positions on the implications of the expansion of crypto assets in the financial environment. ”

This record, whose registration deadline is January 29, 2022, will denote the guideline to follow by the rest of Europe and the world, where it is still not clear how to regulate the cryptocurrency market without spoiling it in the attempt.

Wait and see. Time will tell how this new stage of cryptocurrency trading will develop in that country, where only 10% of its inhabitants use them, according to Statista; and, even so, it progresses more and more towards the centralization of an ecosystem that was born free.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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