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Bank Of Spain Has Registered 17 Crypto Companies, Big Names Still Missing

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Bank Of Spain Has Registered 17 Crypto Companies, Big Names Still Missing

The Bank of Spain has already included 17 virtual asset service providers in its own registry, in which cryptocurrency exchanges and custody providers must be listed to operate, according to Spanish law. Three new companies were included last week, but big names in the crypto ecosystem are still not registered.

Bank of Spain Crypto Registry Reaches 17 Companies

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The registry of virtual asset service providers (VASPs) of the Bank of Spain reached a number of 17 companies last week, with the inclusion of three more crypto businesses. The registry added several exchanges and custody companies June, including Jobchain España, Jobchain Austria, Criptan Trade, Eurocoin Broker, Lemacoin Crypto Solutions, Bitpanda, and Vottun.

The registry of these companies has accelerated in June, with most of the cryptocurrency exchanges registering being local companies that want to be sure they are compliant with Spanish laws. Since the bank opened its registry last year, it has added several crypto companies, starting with Bit2me, which was approved in February. The registry now includes C.R. Tecnología y Finanzas, Bitcoininforme, Bit Base, Blox, Trade Republic Bank, Globalstar Technologies, Onyze Digital Assets, Bitgo Deutschland, and BTC Direct Europe, apart from the companies mentioned above.

The crypto registry is mandatory for crypto companies to operate in the country, and was created in a change to a Spanish law that now requires crypto companies to follow certain guidelines to prevent money laundering and terrorism financing.

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Big Names Still Missing

While the registry has been very successful with local companies, making them register their operations and implementing the compliance tools for money laundering purposes, the reception by bigger international exchanges has not been as successful. Names like Binance and other large exchanges are still out of the list and are part of a list of exchanges currently in regulatory limbo.

Binance, specifically, has been named in a gray list issued by the Bank of Spain that includes cryptocurrency exchanges operating in the country. The company was recently reprimanded by the CMNV, the securities watchdog of the country, that ordered Binance to stop offering cryptocurrency-related derivatives, including futures contracts, to Spanish users of its platform.

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According to reports, the company is already in talks to be included in the crypto registry of the Bank of Spain, but it has still not been approved by the central bank.

What do you think about the progress of the crypto registry of the Bank of Spain? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Bank of Spain

Governor Of Bank Of Spain: Crypto Markets Are ‘Bigger Than Subprime Mortgages Before The Financial Market Crisis’

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Governor Of Bank Of Spain: Crypto Markets Are ‘Bigger Than Subprime Mortgages Before The Financial Market Crisis’

Pablo Hernandez de Cos, governor of the Bank of Spain, has again warned about cryptocurrencies and the growth that the crypto market is experiencing. Hernandes de Cos stated that, while the market is still relatively small at a worldwide level, the cryptocurrency market is now bigger than subprime mortgages before the financial crisis circa 2008, and its links with traditional finance keep growing.

Governor of Bank of Spain Warns About Expansion of Crypto

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The governor of the Bank of Spain has warned about the risks of letting the growing cryptocurrency markets mix with traditional financial institutions. While closing an event, Pablo Hernandez de Cos explained that the interconnection between these unregulated markets and traditional institutions has increased due to the large number of trading instruments that have been launched during this last bull market phase, which includes ETFs, futures, and investment funds.

In this sense, Hernandez De Cos also stated that “some large private companies publicly announced their interest in using crypto assets for cash management, while others campaigned for it.” This has pushed the governor of the Bank of Spain to raise warnings about the instability that this inclusion of crypto variables might have in Spain.

Growth of the Market and Its Dangers

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The growth of the cryptocurrency market in Spain has been exponential, with some estimations giving it a size of more than 60 billion euros ($64 billion) in crypto-related transactions. The governor of the Bank of Spain also made reference to this, stating that they “must not overlook the fact that this market is already larger than that for subprime mortgages in the run-up to the global financial crisis.”

Furthermore, Hernandez de Cos explained that the trading volume of some of the most important assets, like bitcoin, ethereum, and tether, are already near the volumes traded by the New York Stock Exchange during some sessions. This and the relative volatility of some crypto assets have pushed the governor to believe that these markets need to be regulated soon.

Hernandez de Cos explained that:

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We at the Financial Stability Board (FSB) have recently underlined that, if not properly regulated and supervised, these markets could quickly reach a tipping point.

This is not the first time the Bank of Spain has warned about the risks associated with crypto in traditional markets. In a report issued in April, the institution also reported on how the correlation between crypto and traditional markets, and the rise of stablecoins might bring several risks to economic stability.

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What do you think about the new warnings of the governor of the bank of Spain regarding the growth of crypto markets? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Spain Governor Highlights Need For Fast Regulation In Defi And Crypto

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Bank Of Spain Governor Highlights Need For Fast Regulation In Defi And Crypto

Pablo Hernández de Cos, governor of the Bank of Spain and chair of the Basel Committee on Banking Supervision, explained that the cryptocurrency space and decentralized finance (defi) need to be regulated swiftly to avoid risks of financial instability. Hernandez de Cos also mentioned how this swift approach should bring the crypto financial system into the scope of regulation before it grows bigger.

Governor of Bank of Spain Talks Crypto Regulation

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The governor of the Bank of Spain, Pablo Hernández de Cos, who is also part of the banking supervision Basel Committee, explained his take on how he thinks cryptocurrency regulation should be addressed. In a keynote offered at the 36th annual general meeting of the International Swaps and Derivatives Association, Hernández de Cos explained that there needs to be a swift move to regulate cryptocurrency and decentralized finance markets before they can grow to affect the financial stability of the economic system.

On this issue, he stated:

Despite this phenomenal growth, cryptoassets still represent only about 1% of total global financial assets, and banks’ direct exposures are relatively limited to date. Yet we know that such markets have the potential to scale up rapidly and pose risks to individual banks and overall financial stability.

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Furthermore, the governor recommended a “proactive and forward-looking regulatory and supervisory approach” to the subject, declaring that there can be a balance between welcoming these technologies and also mitigating their risks.

Criticizing Crypto and Defi

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Hernández de Cos also took the opportunity to criticize the current state of the cryptocurrency market, citing the crypto fever meme currencies like dogecoin caused in the crypto crowd and the effect that Elon Musk’s thoughts can have on these markets. He remarked:

How many $3 trillion asset classes exhibit wild swings in valuations based on seemingly odd events, such as tweets published on 20 April or Saturday Night Live skits?

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To him, these are clear signs that the market is not so decentralized as it aims to be, and that traits such as “robustness” or “stability” cannot be attributed to cryptocurrencies.

This is not the first time that the Governor of the Bank of Spain has talked about the dangers of introducing traditional financial institutions to cryptocurrencies. Back in February, Hernandez de Cos also warned about this issue, stating that an increase in the exposure of private banks to crypto could introduce new equity and reputational risks.

What do you think about the statements of Bank of Spain Governor Pablo Hernández de Cos? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank of Spain

Spanish Securities Regulator Orders Binance To Stop Offering Cryptocurrency Derivatives

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Spanish Securities Regulator Orders Binance To Stop Offering Cryptocurrency Derivatives

The Spanish securities regulator, the CNMV, has ordered Binance to stop offering cryptocurrency derivative products to customers in the country. According to local media, the crypto exchange giant has followed the orders of the regulator, withdrawing these products from its customers in Spain.

Spanish Securities Regulator Sets Eyes on Binance

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The CNMV, which is the Spanish securities regulator, is putting more pressure on exchanges offering cryptocurrency-linked derivatives in the country. Binance, one of the biggest exchanges in the world by volume traded, has been required to drop the offer of cryptocurrency-related derivatives, like futures contracts, for customers in the country, according to local media.

The purpose of the measure is ostensibly to protect investors using such products as investment tools. The regulator warned last year about the danger of derivatives, stating they increase the complexity of trading operations, and also can cause investors to lose even more than the initial investment capital.

Binance has reportedly withdrawn all of its derivatives offerings from its investments page for Spanish users, preventing them from opening new operations. However, the operations that were already open are being maintained in the same state, as the exchange awaits more feedback from the regulator.

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Gray List

Binance is following the orders of the Spanish regulator as a way of getting the needed permits to establish its operations in the country. Currently, the exchange is in regulatory limbo, being mentioned in a gray list that was published last year with several cryptocurrency exchanges that also operate in Spain. However, Binance has been in talks with the CNMV to get out of this current state and get approval from the Bank of Spain.

The exchange has been in talks to get licenses from the Bank of Spain and the securities regulator since January, but there has not been a positive answer from either as of writing. At the time, Alberto Ortiz, country manager of Binance in Spain, declared:

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By joining the Bank of Spain registry we hope to encourage other firms to do the same.

However, other exchanges have already been greenlighted by the Bank of Spain. Bit2me, a local exchange, was the first one to receive this license, and others have followed since.

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What do you think about the restriction imposed by the CNMV on Binance in Spain? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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