Coinbase confirmed in a Friday, September 22 statement receipt of the anti-money laundering (AML) registration from Banco de España. The AML registration authorizes the crypto exchange Coinbase to offer service to institutional and retail clients across Spain.
The Friday announcement affirms crypto exchange Coinbase’s success in its pursuit of expanding across Europe. Also, the registration shows the firm’s devotion to comply with the regulatory requirements.
Coinbase Enters Spanish Market Following AML Registration
Completing the registration as required by the Banco de España illustrates that Spanish users can utilize Coinbase for custody services for their digital assets. Besides, the Spanish users can execute purchase and sale transactions for their crypto assets in euro.
The San Francisco-headquartered crypto exchange indicated that the registration allows it to unveil a full suite of services and products to the Spanish market. As such, retail and institutional clients can utilize the Coinbase platform. Nonetheless, the parties are mandated to comply with the national regulatory framework.
Coinbase’s statement outlined that nearly a third of individuals living in Spain portray positive sentiments towards crypto assets. The announcement added that 29% of the adults in the country consider crypto as harboring the future of global finance. Also, Coinbase cited the statistical evidence that crypto surpasses traditional bank transfers to rank second among the most preferred payment methods.
Approval by Bank of Spain Expands Coinbase Footprint Across Europe
Nana Murugesan, vice president of international and business development in the Brian Armstrong-led coinbase, lauded the entry into the Spain market. The registration affirms the crypto exchange’s global pursuit of regulatory compliance.
Murugesan lauded the successful bid in Spain, underscoring the desire for Coinbase to operate within their territory. The statement confirmed receipt of VASP registrations granted by regulators in Ireland, Netherlands, and Italy. The firm confirmed securing the in-principle approval to unveil operations in Singapore. It plans to enter the Brazilian market.
Coinbase expansion in Spain comes weeks after it entered the Canadian market. The Brian Armstrong-led crypto exchange identified Canada as the Go Deep Market to pursue, given the crypto awareness in the country. It cited a recent survey by the Ontario Securities Commission indicating that over 30% of citizens were willing to acquire crypto within 12 months.
The approval of Coinbase’s bid to enter Spain’s crypto market comes shortly after Banco de España granted Crypto.com approval on June 23 as a virtual asset service provider. The move by crypto firms to register with the Bank of Spain pursues compliance with the October directive on the steps for the digital asset service providers to accomplish AML compliance.
Banco de España directed all crypto exchanges to file reports outlining efforts to avert illicit activities, including terrorism financing and money laundering. The registration of crypto exchange Coinbase aligns with its objective to establish a strong presence across Europe.
A recent update from Coinbase indicated that it had in November 2022 attempted to acquire a defunct crypto exchange, FTX Europe. Also, it would again submit a second bid to acquire the European business of the collapsed FTX in September 2023.
Coinbase to Leverage EU Regulatory Clarity as MiCA Becomes Effective
Coinbase entry into Spain follows the European Parliamentary Research Service (EPRS) directive. It recently emphasized that non-European regulators should exercise stricter oversight of the operations in the global crypto market.
The EPRS directive acknowledges that the Markets in Crypto Assets (MiCA) Act is edging closer to the implementation deadline in December 2024. As such, EPRS supports adopting a rigorous regulatory framework within non-EU jurisdictions.
Coinbase’s pursuit of a growing presence in the European market coincides with when EPRS warned that the EU financial system is vulnerable. The report indicated that the autonomy of the financial system is susceptible to its dependence on policy actions undertaken by non-EU countries applying MiCA.