The regulation of Bitcoin and other cryptocurrencies has been a hot topic in Spain in recent years.
The popularity of digital assets has sparked the interest of investors, businesses and, of course, regulators.
This article examines the current landscape, the impact of the MiCA (Markets in Crypto-Assets) regulation and the implications for users and businesses in Spain.
The current situation in Spain
In Spain, cryptocurrency regulation is constantly evolving. Regarding its specific legislation for Bitcoin, several regulations influence its use and marketing. Among them, the following stand out:
Anti-Money Laundering (AML) : Cryptocurrency exchanges must comply with the Anti-Money Laundering and Countering the Financing of Terrorism Act. This involves identifying customers and reporting suspicious activity.
Taxation : Profits obtained through cryptocurrencies are subject to income tax. In addition, balances and transactions in cryptoassets are required to be declared in Form 721 for assets abroad.
Regulated advertising : The CNMV controls the advertising of financial products related to cryptoassets. Companies must ensure that their advertisements include clear warnings about the risks.
While these measures are intended to protect users, they have also created uncertainty for cryptocurrency-related businesses.
MiCA: the European regulatory framework
The European Union has taken a major step forward with the approval of the MiCA Regulation. This framework aims to unify the regulation of cryptoassets in member countries, including Spain. Its main features include:
Licensing for providers : All companies that operate with cryptoassets will need a specific license. This will ensure a minimum level of security and transparency.
Consumer protection : MiCA seeks to protect users by disclosing clear information about the risks and characteristics of products.
Centralized supervision : National authorities, such as the CNMV in Spain, will work in coordination with European bodies to supervise activities.
The entry into force of MICA in 2024 changes, and will significantly change, the outlook for companies and users in Spain.
The MiCA (Markets in Cryptoassets Regulation) legislation came into force in two phases:
June 30, 2024: The provisions on asset-referenced tokens and e-money tokens (Titles III and IV of the Regulation) came into force. This means that companies issuing these types of tokens are now subject to the new regulations.
30 December 2024: The rest of the regulation will come into force, including the provisions relating to crypto-asset service providers. From this date, all companies offering cryptocurrency-related services will have to comply with the requirements set out in MiCA.
What does this mean in practice?
As of December 30, 2024, cryptocurrency exchanges, digital wallet providers and other industry players will be required to:
Obtaining authorization: Companies that provide services related to crypto assets must request authorization from the competent authority in their country (in Spain, this would be the CNMV).
Comply with capital requirements: They must maintain minimum equity to ensure the solvency of the company.
Protecting client funds: Client funds must be segregated from the firm's own funds.
Informing customers: Companies must provide customers with clear and concise information about the risks associated with investing in cryptocurrencies.
Impact on users and companies
The MiCA regulation promises both benefits and challenges for the various market players. For users, it will increase confidence and security when trading cryptoassets. However, it could also limit access to certain international services that do not comply with European regulations.
Companies will face a greater administrative burden. From obtaining licenses to complying with strict transparency requirements, operating costs could rise. However, the common framework could facilitate expansion within the European Union.
The challenges ahead
Despite progress, significant challenges remain.
Adapting national regulatory frameworks to MiCA will be a complex process. In addition, authorities must balance consumer protection with the promotion of innovation.
On the other hand, the risk of “de-banking” of some cryptocurrency projects could make market access difficult for startups and small businesses. This underlines the importance of implementing MiCA in a flexible and pragmatic way.
