The Spanish government does not stop imposing a tough stance on cryptocurrencies, because another rule will strengthen existing cryptocurrencies. A recently issued royal decree aligns current regulations with EU directives on anti-money laundering (AML).
The rules are consistent with the European AMLD5 policy
According to the decree issued by the state’s official communications, Spanish law now follows Directive 2018/843, commonly referred to as AMLD5. Specifically, cryptocurrency exchanges and custody companies must share customer data with the entire European group.
In other words, domestic cryptocurrency companies should register with the Spanish authorities as a “new obligation subject” in order to comply with the rules. An excerpt from the decree is as follows:
While establishing the registration agency, it also stipulates that legal persons and entities without legal personality have the obligation to obtain, retain and update the beneficially owned information, and provide it to the authorities and the subject of obligations. In this case, both data and information must be kept in this registration form, and the person responsible for its maintenance and update must be clearly stated.
The definition of cryptocurrency in the Royal Decree
In addition, crypto hedge funds are required to follow a new procedure, which also requires all participating companies to report “suspicious transactions” to the authorities.
Interestingly, another requirement of the regulation attempts to cross-collect data with other European countries and then open it to “public access.”
The decree also defines cryptocurrencies that should comply with the law:
Virtual currency will be understood as a digital representation of value, not issued or guaranteed by a central bank or public institution, not necessarily associated with a legally established currency, and does not have the legal status of currency or money, but is accepted as a virtual currency. Means of exchange, and can be transferred, stored or traded electronically.
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