Coinbase obtains Bank of Spain AML registration.

Coinbase, the cryptocurrency exchange, has successfully secured Anti-Money Laundering (AML) compliance accreditation from Spain’s central bank as part of its strategic expansion endeavors across Europe.

According to a statement released on September 22nd, this accreditation now empowers Spanish users to retain custody of their crypto assets within the Coinbase platform, facilitating seamless buying and selling of crypto assets in euros.

In the words of Coinbase, “This registration will enable us to offer our comprehensive suite of products and services to both retail and institutional users in Spain, all while adhering to the national legal framework.” This milestone achievement is further underscored by the fact that nearly one-third of individuals in Spain hold an optimistic view of digital assets, with the statement noting that “29% of adults in Spain believe crypto is the future of finance.”

Notably, the emergence of crypto as Spain’s second most favored payment method, surpassing traditional bank transfers, underscores the growing significance of this digital financial revolution. Nana Murugesan, Coinbase’s Vice President of International and Business Development, emphasized the company’s commitment to regulatory compliance on a global scale. He remarked, “In the past year alone, we have secured VASP registrations in Italy, Ireland, and the Netherlands, and we have obtained in-principle approval and launched operations in Singapore, Brazil, and most recently, Canada.”

This development follows closely on the heels of another crypto exchange, Crypto.com, attaining regulatory approval in Spain. On June 23rd, Crypto.com proudly announced its receipt of a virtual asset service provider registration from the Bank of Spain. Worth noting is that in October 2021, the Bank of Spain had issued comprehensive guidelines outlining the steps crypto service providers must undertake to achieve AML compliance within the country. These instructions mandate crypto exchanges to submit detailed reports detailing their efforts to thwart illicit activities such as money laundering and terrorism financing.

Meanwhile, recent reports suggest that Coinbase is making significant strides in establishing a robust presence in the European market. In a report by Cointelegraph on September 22nd, it was revealed that Coinbase had made two separate attempts to acquire the defunct crypto exchange FTX Europe: first in November 2022, when FTX filed for bankruptcy, and again in September 2023. These actions coincide with heightened calls for stricter oversight of the global crypto market by non-European regulators, as emphasized by the European Parliamentary Research Service (EPRS). With the impending implementation deadline of the Markets in Crypto-Assets Regulation (MiCA) Act in December 2024, the EPRS report stresses the urgent need for a more rigorous regulatory framework in non-EU jurisdictions, citing potential risks to the EU’s financial system and autonomy. As the report asserts, “There are still several avenues through which the EU’s financial stability and autonomy remain vulnerable, contingent upon policy actions taken by non-EU countries in the context where the MiCA is applicable.”