Monday, May 29

Binance prepares its landing in Spain and registers with the regulator

The cryptocurrency infrastructure provider Binance has submitted this Friday its request to register with the Bank of Spain as a cryptocurrency service provider, an initiative with which it “formalizes its commitment to local regulators” and takes its first steps to disembark in Spain.

Last October, the Bank of Spain enabled the registry for cryptocurrency service providers, in order to ensure that these companies have adequate procedures and bodies for the prevention of money laundering and terrorist financing, as well as compliance with the requirements of commercial and professional honorability. The supervisor has established that natural or legal persons who offer or provide these cryptocurrency services in Spain must register, regardless of their nationality, as well as natural or legal persons whose base of activities is in Spain, regardless of the location of the recipients. .

This registration has been the first step to try to regulate the thriving cryptocurrency market in our country, which has been followed by the CNMV circular on cryptoactive advertising, published in the BOE last week, and which defines the rules and contents for advertising campaigns.

Until now, Binance did not have a Spanish subsidiary. The creation of its own division in Spain reflects Binance’s interest in the Spanish market, in which it plans to carry out educational activities and promote local talent, as highlighted by the company in a statement.

The creation of a Spanish division will also mean submitting to the surveillance of the Tax Agency and being accountable for the capital gains generated by transactions with crypto assets. As established by the anti-fraud law, Spanish cryptocurrency platforms or those with permanent establishments in Spanish territory, as will now be the case with Binance, will have to comply for tax purposes with the requirements that are asked of banks and intermediaries. financial. Thus, they must send the Tax Agency information on operations likely to have generated capital gains, something that until recently did not occur in the case of cryptoactive platforms established in our country.

“In Spain, several million people dedicate part of their time daily to blockchain technology and crypto assets. We celebrate that the Bank of Spain has recognized this social reality and has established a channel for users to be protected and for companies like Binance can provide their services with legal certainty and regulatory support”, highlighted the head of Binance for Spain and Portugal, Alberto Ortiz.

Ortiz has emphasized that “having good regulations that protect consumers while encouraging innovation is important for the growth of the industry.”

This Chinese crypto-asset platform has received harsh warnings in the past from German and British regulators, which last summer even banned it from operating in the United Kingdom.