Bitcoin is bitten as Spain takes action to regulate cryptocurrency

Cracking down on cryptocurrency Credit: Pixabay

AS the European Central Bank considers introducing a virtual euro, Bitcoin is bitten as Spain takes action to regulate cryptocurrency.

The Bank of Spain has been warning that investments in all types of cryptocurrencies, not just Bitcoin, are potentially, very risky, but a significant number of Spaniards have been taking advantage on the until now relatively tax free profits from buying and selling.

This is likely to change very shortly as the Government and the Bank want to protect Spain against the twin evils of terrorism financing and money laundering as well as making sure that no tax avoidance takes place.

A new registration process for crypto-exchanges is due by October so that exchanges, along with crypto-asset custody platforms and wallets, will be required to register with authorities in order to comply with legal requirements.

According to website www.ambcrypto.com, the National Securities Market Commission (CNMV) issued warnings to 12 entities on Monday for remaining unlisted in the commission’s registry.

Those under fire include popular exchanges such as Huobi and Bybit, both of which allegedly don’t have permission to provide investment services.

Once the new registry is established, companies will have until January 2022 to apply for registration and to be accepted, they will have to be able to prove that they have sturdy anti-money laundering and anti-terrorist measures in place.

This registry will be shared with other countries within the European Union with the intent of ensuring that all transactions are transparent and above board.

Spain isn’t necessarily anti cryptocurrency but it wants to ensure that it takes its fair share of the profits and doesn’t leave any options for money laundering in any form.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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