Coinbase now a registered crypto exchange in Spain.

Coinbase now a registered crypto exchange in Spain.

Spain Embraces Blockchain Industry as Coinbase Receives Regulatory Approval

Source: AdobeStock / gguy

Coinbase, the largest cryptocurrency exchange in the United States, has obtained an Anti-Money Laundering (AML) compliance registration from the Bank of Spain. This achievement marks a significant milestone for Coinbase, as it establishes the exchange as a registered crypto platform in the country.

In a recent blog post, Coinbase announced its expansion into Europe, specifically targeting Spanish users who can now confidently store their digital assets on the platform. Additionally, they can engage in buying and selling crypto assets using the euro. The registration with the Bank of Spain grants Coinbase the ability to offer its full suite of products and services to both retail and institutional users in Spain while ensuring compliance with the country’s legal framework.

Coinbase has been actively pursuing regulatory approvals across Europe over the past year. It has obtained Virtual Asset Service Provider (VASP) registrations in countries such as Italy, Ireland, and the Netherlands. Furthermore, it has received in-principle approval and launched services in Singapore, Brazil, and Canada. These regulatory achievements demonstrate Coinbase’s commitment to complying with international standards and expanding its presence globally.

Nana Murugesan, Vice President of International and Business Development at Coinbase, expressed excitement about the registration from the Bank of Spain, emphasizing the aim to support and grow retail consumers, institutional clients, and developer partners in Spain. Murugesan also highlighted the global trend of increasing regulatory clarity and guidance for the crypto industry, showing that countries worldwide are recognizing the potential and importance of blockchain technology and cryptocurrencies.

Spain’s Favorable Outlook on Cryptocurrencies

Spain has shown a growing affinity towards cryptocurrencies and blockchain technology. According to Coinbase’s announcement, approximately 29% of Spanish adults believe that crypto is the future of finance. This sentiment reflects the increasing mainstream adoption of digital assets in the country.

Furthermore, crypto has emerged as the second most preferred payment method in Spain, even surpassing traditional bank transfers. A research study by Bitnovo revealed that 60.7% of Spanish citizens are motivated to buy cryptocurrencies for long-term investments, while 35.7% see it as a means of making payments.

Coinbase’s registration in Spain follows the regulatory approval received by Crypto.com from the Bank of Spain in June. These developments signify the growing recognition of the cryptocurrency industry by regulatory authorities and the increasing acceptance of digital assets by individuals and businesses in Spain.

Coinbase’s Strategic Expansion Efforts

Coinbase’s desire to establish a strong presence in Europe aligns with recent calls for stricter oversight by non-European regulators in the global crypto market. The European Parliamentary Research Service (EPRS) has emphasized the need for a more rigorous regulatory framework in non-EU jurisdictions, especially with the upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) Act by December 2024.

Coinbase’s pursuit of expansion extends beyond regulatory compliance. The exchange has reportedly made attempts to acquire the defunct crypto exchange FTX Europe on two occasions. Such strategic moves indicate Coinbase’s determination to solidify its position in the European market and take advantage of the region’s growing interest in cryptocurrencies.

However, concerns have been raised within the crypto sector regarding the implications of the MiCA regulation. Marina Parthuisot, Head of Legal at Binance France, has expressed worries about the potential delisting of stablecoins in Europe due to MiCA’s implementation. Legal experts are currently grappling with interpreting the regulatory changes brought by MiCA, which adds complexity and uncertainty to the landscape.

In conclusion, Coinbase’s registration with the Bank of Spain attests to the increasing acceptance and adoption of blockchain technology and cryptocurrencies in Spain. It also showcases Coinbase’s dedication to regulatory compliance and expansion into new markets. With Spain becoming more crypto-friendly, other countries may take note and follow suit. As the global crypto industry evolves, collaboration between regulators, exchanges, and businesses will be essential in fostering a secure and thriving ecosystem for digital assets.