Spanish Authorities Warn Cryptocurrency Exchanges For Unregistered Services

Spanish Authorities Warn Cryptocurrency Exchanges For Unregistered Services

Cryptocurrency businesses have continued to receive pressure globally from different regulatory bodies. For example, the Spanish National Securities Market Commission (CNMV) recently released a warning to many financial markets and crypto-related businesses. The warning is on unregistered services which they offer.

From the official document from CNMV, about 11 entities received the warning from the regulatory body on August 16. The document stressed the non-compliance of these entities with the registry of the commission.

Among the listed entities are some prominent crypto trading platforms like Bybit and Huobi. However, this Spanish regulatory body maintains that the unregistered entities have no authorization to provide investment services in the country.

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According to CNMV’s consulting page, the mandate to provide security-related services is only for registered companies in Spain. Though CNMV has no power to ban a company from operating in Spain directly, it can put forth a court appeal.

Through a November report, Crypto Company Guide in Spain disclosed that about 120 crypto businesses are registered and operational in Spain.

A review of some activities from last reveals that Spain has created a friendly environment for crypto businesses.

First, there was the approval of a law to develop a sandbox for financial technologies by the Committee on Economic Affairs and Digital Transformation.

In his speech, Professor Ismael Santiago from the University of Seville confirmed the sandbox would enhance new jobs with increased value. Also, it will bring economic competitiveness and technological development.

Moreover, the professor confessed that implementing the sandbox will be a push-up for Spain by making it a reference point in Europe. In fact, such an establishment catalyzes the crypto ecosystem while attracting more national and international talent.

There’s a recent move from the Spanish Socialist Workers’ Party via the introduction of a non-law proposition. This has to do with launching a national digital currency following experimentation of the digital euro by the European Central Bank.

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According to the proposal, when there’s a necessity for a monetary expansion, a national digital currency would allow higher liquidity.

It will enable a more direct process through the provision of liquidity into current accounts. In addition, such a process will create instantaneous transfers without using any intermediaries or third parties.

Furthermore, the use of digital currency ends banks’ privilege over money. This implies that there’ll be no nationalization of credit or nationalization of the banking system.