Spain’s Financial Regulator Issues Warning to Investors about Unlicensed Crypto Companies
Background: CNMV Lists 18 Unauthorized Companies, Some in the Crypto Sector
The National Securities Market Commission (CNMV) of Spain has published a list of 18 companies that are operating within the country without the necessary licenses. Among these entities, several companies operating in the burgeoning cryptocurrency sector were identified, such as Bitbinx, Crytomerge, and CryptoMaxiTrade.
CNMV’s Warning to Affected Investors
The CNMV clarified that these companies had not registered with the commission, making them unauthorized to offer investment services or engage in activities subject to CNMV oversight. The regulatory body acknowledged its limitations and advised affected investors to consider legal recourse through the ordinary judicial system.
Significant Increase in Registered Crypto Companies in 2023
Despite the regulatory challenges, Spain experienced a substantial increase in officially registered crypto companies during 2023. The registry, available as an Excel file on the central bank’s Website, reported a 56% increase in the number of companies that obtained virtual asset service provider licenses during this period. Currently, the registry encompasses 83 companies, including major players like Binance, Bitpanda, Revolut, and Crypto.com.
Spain’s Proactive Approach to Crypto Regulation
In 2023, Spanish regulatory bodies solidified their stance on crypto-related activities. The Spanish Ministry of Economy and Digital Transformation announced plans to expedite the implementation of the Markets in Crypto-Assets Regulation (MiCA), the EU’s first comprehensive crypto framework. In November 2023, the CNMV initiated its inaugural case against a technology provider, Miolos, for allegedly violating crypto advertising regulations.
Spain’s Prominence in the Global Crypto Landscape
Spain ranks fourth globally in terms of operational cryptocurrency ATMs, with 310 machines. This thriving crypto ecosystem reinforces Spain’s position as a key player in the contact crypto landscape. The Bank of Spain is currently exploring the feasibility of introducing a central bank digital currency (CBDC), having selected collaborators to pilot a wholesale CBDC in January 2024. If implemented, Spain’s CBDC would extend coverage to all economies within the eurozone.
Spain’s Embrace of Digital Innovations
Despite the challenges posed by unlicensed entities, Spain’s proactive approach to crypto regulation signals its commitment to fostering a secure and innovative crypto environment. Furthermore, Spain’s exploration of a CBDC underscores its willingness to embrace digital innovations in the financial sector and maintain its leadership position in the global crypto space.
