On-shore VASP in Spain

CNMV — Securities market, crypto advertising regulation (mandatory risk warnings)

Banco de Espana — VASP registration, AML/CFT

MiCA Regulation (EU) (2023) — CASP authorization, comprehensive crypto regulation

Law 10/2010 (Anti-Money Laundering) (2010) — Pre-MiCA VASP registration with Banco de Espana

VASP: CASP authorization under MiCA via CNMV/Banco de Espana. 6-12 months. Relatively reasonable registration process — attracted crypto firms.

CUSTODY: CASP authorization — custody is a licensed MiCA activity

EXCHANGE: CASP authorization under MiCA; CNMV mandatory risk warnings on all crypto marketing

Identification and Verification of the Customer:

Natural Persons: Obtain and verify identity using reliable independent sources (e.g., national ID card, passport). Required data includes full name, date and place of birth, address, and national identification number.

Legal Persons/Entities: Obtain and verify the name, legal form, address, proof of incorporation, articles of association, names of directors, and the legal representative(s).

Carrying out occasional transactions exceeding €1,000 (whether in a single transaction or several linked transactions).

Identification and Verification of the Customer:

For legal entities, identify any natural person(s) who ultimately own or control 25% plus one share or more of the entity, or who otherwise exercise control.

If no such natural person is identified, identify the natural person(s) who hold the position of senior managing official(s).

Understanding the Purpose and Intended Nature of the Business Relationship:

Ongoing Monitoring of the Business Relationship:

When CDD is Required:

Establishing a business relationship.

Where there is suspicion of money laundering or terrorist financing.

When there are doubts about the veracity or adequacy of previously obtained customer identification data.

Requirement: Under MiCA, providing "custody and administration of crypto-assets on behalf of clients" will require a full authorization (license) from a national competent authority (in Spain, likely the CNMV - Comisión Nacional del Mercado de Valores, or potentially the Bank of Spain, subject to national implementation laws).

Key Provisions: Articles 53-62 of MiCA detail the authorization process and requirements for all CASPs, including those offering custody.

CASPs offering custody must enter into a custody agreement with clients.

Segregation: They must ensure the segregation of clients' crypto-assets and funds from their own assets, and from the assets of other clients, in their accounting records.

MiCA introduces prudential requirements for CASPs.

Key Provisions (Article 67 - MiCA):

Travel Rule adopted — threshold: EUR 0 (no threshold under TFR recast)

Entity Targeted: Binance (specifically, Binance Spain S.L.). Violation Type: Non-compliance with the CNMV's Circular 1/2022 on advertising of crypto-assets. The alleged violations included insufficient disclosure of risks, lack of clarity, and inadequate warnings in advertising campaigns. Outcome: Fine imposed and publicly announced. This marked a significant enforcement of Spain's relatively new crypto advertising rules.

Entity Targeted: Tools for Humanity Corp. (the company behind the Worldcoin project). Violation Type: Illicit processing of personal data (especially sensitive biometric data like iris scans), lack of transparency, insufficient information provided to users, and processing of data of minors. Penalty Amount: Precautionary measure imposing an immediate prohibition on the collection and processing of personal data by Worldcoin in Spain. A final fine amount will be determined after a full investigation, potentially reaching up to €20 million for GDPR violations. Outcome: Precautionary measure imposed, requiring Worldcoin to cease all data collection and processing activities in Spain related to its iris scanning. Investigation ongoing. This is a very significant action due to its direct operational impact and the novelty of regulating biometric data in a crypto context.

Entity Targeted: Numerous (hundreds) of unregistered entities operating in the cryptocurrency and forex markets, often referred to as "chiringuitos financieros" (financial boiler rooms). Specific examples include warnings against companies like Bitget, MEXC Global, and countless smaller, fraudulent-appearing platforms. Violation Type: Offering investment services or products related to crypto assets in Spain without the required authorization or registration with the CNMV. This often includes deceptive advertising practices. Penalty Amount: While not a single "fine," the outcome is a public warning, inclusion on the CNMV's "grey list" (list of unauthorized firms), and potential legal action or blocking of access within Spain. This effectively prohibits their operations in Spain and serves as a public consumer alert. Outcome: Prohibition of unauthorized operations in Spain, public consumer warning, and potential escalation to legal action. This proactive enforcement has been a continuous and significant effort to protect investors.

Tax Rates (Base del Ahorro - Savings Income): Capital gains from virtual assets are integrated into the "savings income" tax base and are subject to progressive rates:

Modelo 100 (Annual Personal Income Tax Declaration): All capital gains, losses, and income from cryptocurrency activities must be declared in the annual IRPF form.