Bank of Spain publishes new guidelines for cryptocurrency service providers

The central bank of Spain has introduced new registration guidelines for cryptocurrency service providers in the country, including banking and financial institutions. 

Bank of Spain opens registry for crypto firms

Digital asset service providers will need to sign up in the registry with the Bank of Spain to comply with anti-money laundering (AML) guidelines. 

The central bank stated that all individuals and institutions providing cryptocurrency-related services such as trading and custody would need to register regardless of whether they have registered with other administrative records in the country.

Individuals and legal entities are required to report on their measures to prevent money laundering, terrorism and other illicit activities that include certain information on their users.

This process was first announced by Spain’s central bank in June to later on, provide instructions on how to proceed with registration. 

Companies can only register online, while individuals can go to the offices of the General Registry of the central bank to deliver the necessary documents.

Institutions in Spain would be required to register with the central bank regardless of where their customers are located. They would also need to include documentation that outlines preventive measures of illicit activities, a risk analysis document and identification documents of the people running the compliance operations. 

Harsh penalties will be imposed for companies and individuals who continue to operate without registering with the central bank. The penalties could be as high as $11.6 million for those who fail to register.