Cryptocurrency exchange Coinbase has recently obtained an Anti-Money Laundering (AML) compliance registration from Spain’s central bank, signaling its expansion into the European market. According to a statement released on September 22, this registration now allows Spanish users to store their crypto assets on Coinbase, as well as buy and sell digital currencies using the euro.
Obtaining the registration with the Bank of Spain enables Coinbase to offer its full range of products and services, both to retail and institutional users, while ensuring compliance with the national legal framework. The exchange highlighted the growing interest in digital assets in Spain, with nearly one-third of adults in the country believing that cryptocurrency is the future of finance.
In addition to that, Coinbase noted that crypto has become Spain’s second most preferred payment method, surpassing traditional bank transfers. This aligns with Coinbase’s goal of expanding its presence and user base in Europe, where it has already obtained Virtual Asset Service Provider (VASP) registrations in Italy, Ireland, and the Netherlands.
Nana Murugesan, the Vice President of International and Business Development at Coinbase, emphasized the company’s commitment to regulatory compliance worldwide. He mentioned that in the past year, Coinbase has obtained registrations and approvals in multiple countries, including Singapore, Brazil, and Canada, indicating its global expansion efforts.
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It’s worth noting that Coinbase is not the only cryptocurrency exchange seeking regulatory approval in Spain. Crypto.com, another major digital asset exchange, recently received regulatory approval from the Bank of Spain to offer its services in the country. This demonstrates the growing interest in cryptocurrencies within Spain and the increasing importance of regulatory compliance for exchanges operating in the region.
The Bank of Spain has been proactive in providing guidelines and regulations for crypto service providers to ensure AML compliance. In October 2021, the bank issued guidelines outlining the necessary steps for crypto exchanges to take in order to achieve compliance with AML regulations. These steps include submitting reports detailing efforts to prevent illicit activities, such as money laundering and terrorism financing.
Coinbase’s expansion efforts in Europe have also been evident through its attempts to acquire FTX Europe, a defunct crypto exchange. Reports suggest that Coinbase made two failed attempts to purchase FTX Europe, once in November 2022 and again in September 2023, indicating the exchange’s desire to establish a strong presence in the European market.
Furthermore, the European Parliamentary Research Service (EPRS) has recently emphasized the need for stricter oversight by non-European regulators in the global crypto market. As the Markets in Crypto-Assets Regulation (MiCA) Act moves towards its implementation deadline of December 2024, the EPRS report recommends establishing a more rigorous regulatory framework in non-EU jurisdictions to safeguard the EU’s financial system and autonomy.
As Coinbase continues to expand its operations across Europe and secure regulatory approvals in various countries, it aims to provide a secure and compliant platform for users to buy, sell, and store cryptocurrencies. By obtaining the Bank of Spain’s registration, Coinbase reaffirms its commitment to meeting regulatory requirements and ensuring the safety of its users’ digital assets.
In conclusion, Coinbase’s registration with the Bank of Spain is a significant milestone for the exchange as it expands its services in Europe. With a growing interest in cryptocurrencies among Spanish users, Coinbase’s compliance with AML regulations will enable more individuals and institutions to participate in the digital asset market while adhering to the national legal framework. As Coinbase continues to seek regulatory compliance globally, its expansion efforts in Europe and other regions contribute to the overall mainstream adoption of cryptocurrencies.
