Crypto License in
Spain 2024
Spain, as one of the leading economies in the Eurozone, actively participates in the regulation of the cryptocurrency market. The Bank of Spain (Banco de España), together with the National Securities Market Commission (CNMV), plays a crucial role in developing and implementing the legal framework for cryptocurrency operations.
By emphasizing a forward-looking approach, Spain’s regulatory framework not only promotes technological advancements but also establishes stringent measures to protect the financial ecosystem from emerging threats, including fraud, money laundering, and market manipulation.
On this page, you will find detailed information about the process of obtaining a crypto license in Spain, the requirements for applicants, the application procedure, and tips on overcoming possible challenges. We will help you expedite and simplify the licensing process, ensuring compliance with all legal requirements.
Regulations for Crypto license in Spain
Сryptocurrency regulations are developed to reinforce market transparency, safeguard consumer rights, and curb unlawful activities. These regulations are overseen by the Bank of Spain and the National Securities Market Commission (CNMV), which enforce strict compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) standards. This robust framework plays a vital role in protecting the integrity of Spain’s financial system against illicit activities.
Spain’s approach to crypto licensing provides clear and secure guidelines for businesses, investors, and consumers. The framework includes a comprehensive array of standards designed to ensure the stability, security, and compliance of the digital asset sector. Below are the key regulatory aspects for obtaining a crypto license in Spain:
1. Registration and Licensing
1. Registration and Licensing
- All businesses involved in cryptocurrency activities, such as exchanges and wallet providers, must register with the Bank of Spain and the CNMV as VASP (Virtual Asset Service Provider). This requirement is essential to ensure compliance with Spain’s regulatory framework and international standards.
- As of now, CASP (Crypto Asset Service Provider) license in Spain is anticipated to be introduced following the full adoption of the MiCA regulation across the EU. This license will essentially replace the VASP license in its current form, incorporating the same core requirements with additional obligations as per MiCA.
2. Anti-Money Laundering (AML) and Know Your Customer (KYC)
2. Anti-Money Laundering (AML) and Know Your Customer (KYC)
- In Spain, all companies involved in cryptocurrency activities must harmonize with Anti-Money Laundering (AML) legislation. This includes client identification, transaction monitoring, and reporting suspicious activities. The key requirements are outlined in Law 10/2010, and the regulations are enforced by the CNMV and SEPBLAC (the Financial Intelligence Unit of Spain).
- KYC involves collecting and verifying client information to prevent fraud and ensure legal operations. Companies are required to identify customers when opening accounts and regularly update this information.
3. Financial Reporting and Auditing
3. Financial Reporting and Auditing
- Cryptocurrency companies in Spain must regularly undergo financial audits conducted by independent auditors. These audits ensure that the company’s financial activities comply with Spanish regulations and maintain transparency.
- Legal entities are obligated to periodically report their financial performance, including transaction volumes and other relevant financial data, to regulatory bodies like the CNMV, ensuring continuous compliance with the legal framework.
4. Consumer Protection
4. Consumer Protection
- Companies must ensure that customers receive clear and detailed information about the services offered, including associated fees and potential risks linked to cryptocurrency transactions.
- It is also important to implement robust measures to protect customer funds, including the use of secure and insured custodial services to minimize risks.
5. Cybersecurity Standards
5. Cybersecurity Standards
- Data Protection Measures: Spanish cryptocurrency companies are required to implement stringent cybersecurity measures to protect client data and financial transactions. This includes data encryption, user authentication, and regular security audits.
- Incident Management: In the event of a security breach or cyber incident, businesses must swiftly notify the relevant authorities and take immediate steps to minimize any potential damage.
- Compliance with GDPR: Companies must comply with the General Data Protection Regulation (GDPR), which governs the processing and storage of personal data within the EU, including Spain. Failure to adhere to these requirements can result in significant penalties.
6. Operational Requirements
6. Operational Requirements
- In Spain, there are no specific minimum capital requirements legislated for cryptocurrency companies. However, companies must have sufficient financial resources to cover operational risks and ensure business stability. This is usually determined by the standard requirements for the type of company, whether it is an SL (Sociedad Limitada) or SA (Sociedad Anónima).
- Internal Controls: Cryptocurrency companies in Spain are required to establish and maintain effective internal controls to ensure compliance with regulatory standards. This includes risk management processes, employee training programs, and clearly defined operational procedures to protect against financial crimes.
- Record-Keeping: it is crucial to maintain detailed records of all transactions and communications. These records must be accessible for review by regulatory authorities for a specified period, ensuring transparency and accountability.
7. International Cooperation
7. International Cooperation
Cross-Border Collaboration: Spain actively participates in international efforts to regulate the cryptocurrency market. This involves cooperation with other EU member states and global organizations to align regulatory practices and combat cross-border financial crimes.
Information Sharing: Spanish regulatory bodies, such as CNMV and SEPBLAC, engage in information exchange with international counterparts to enhance the effectiveness of AML and CFT measures globally.
8. Innovation and Adaptability
8. Innovation and Adaptability
- Spain’s regulatory framework is designed to adapt to the rapidly evolving cryptocurrency landscape. This includes updating regulations to accommodate new technologies and business models while ensuring that innovation does not compromise consumer protection or financial stability.
- The Spanish government encourages the development of fintech and blockchain technologies through various initiatives and regulatory sandboxes, providing a supportive environment for startups and established companies alike.
Types of VASP licensing in Spain
In Spain, cryptocurrency businesses operate under the Virtual Asset Service Provider (VASP) license. This license authorizes companies to engage in activities related to virtual assets, including the exchange of cryptocurrencies for fiat or other digital assets, the transfer of crypto between accounts, and the custody or safekeeping of digital assets on behalf of clients. While the VASP allows for a range of these services, it does not specifically categorize them into distinct groups. The focus of the regulatory framework is on ensuring that these activities comply with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, rather than on defining precise service categories.
CASP license in Spain
Crypto Asset Service Provider (CASP) license in Spain is mentioned in various contexts, especially in relation to the upcoming MiCA (Markets in Crypto-Assets) regulation across the European Union. However, CASP has not yet been fully implemented by Bank of Spain. It is expected to be introduced following the complete adoption of MiCA, making similar requirements as the VASP license but with additional obligations to align with broader EU standards under MiCA.
MiCa regulations in Spain
The MiCA regulations in Spain, expected to be fully implemented by December 2024 and transition period from 2025 to 2026 year. MiCa introduce stricter capital requirements, ranging from 50,000 to 150,000 euros, depending on the nature of services offered. Businesses should also prepare for additional documentation during the application process to comply with these new standards. Hereunder are described services with expected required share capital divided by three classes:
| Description of services | Share Capital | |
|---|---|---|
| Class 1 |
| 50,000 EUR |
| Class 2 |
| 125,000 EUR |
| Class 3 |
| 150,000 EUR |
Overview of requirements to obtain Digital Asset license in Spain
- The company must be registered in Spain, compliant with local legislation.
- The company must register as a Virtual Asset Service Provider (VASP) with the Bank of Spain.
- Appointment of a local Compliance Officer with experience in AML/CFT rules.
- Minimum share capital requirements must be met, typically aligned with the type of services offered.
- Full compliance with Law 10/2010 for AML and KYC procedures, with regular reporting to SEPBLAC.
Estimated time frames
Gathering documents
1-2 weeks
Company formation
up to 2 weeks
Documents preparation
1-2 weeks
License Issuance*
3 months
*The timeline may vary based on the completeness of documentation and the responsiveness of the Bank of Spain.
Legal services for obtaining Crypto license in Spain
Basic Package
7,400 EUR
- Legal support with Crypto expert
- Company name verification and reservation
- SL Company registration
- Due-diligence for shareholder and key members
- Legal Address for 1 year
- Obtaining company tax ID (NIF)
- Obtaining individual tax ID (NIE)
- Corporate documents
- Standard AML/KYC/CFT Policy
- Filling application for the VASP license
- Communication with Bank of Spain authority
- Assistance with employment of AML Officer
Additional services on request
- Physical office space rental, including rental agreement
- Local AML officer
- Local director with financial background
- Individual Business plan
- AML/KYC Policy
- Corporate bank account for high-risk
- Accounting services
- Apostilled corporate documents
- Introduction to confirmed software provider
Ready-Made solution
available on request
- Registered company
- Legal address for 1 year
- No debts, no liabilities – clean company
- Active license
- Corporate documents
- Assistance with transfer of ownership
Eriks Fijalovs
Head of Blockchain and Crypto
Detailed Requirements for Crypto licensing in Spain
Obtaining a crypto license in Spain involves a comprehensive and multi-faceted process designed to ensure compliance with both national and EU regulatory standards. This process is critical for maintaining the integrity of the financial system and safeguarding against risks. Below is an in-depth look at the requirements for obtaining a crypto license in Spain:
List of required documents
- AML/KYC/CFT Policy: In accordance with Law 10/2010, companies are required to implement a comprehensive policy addressing Anti-Money Laundering (AML), Know Your Customer (KYC), and Countering the Financing of Terrorism (CFT). This policy should include:
- Anti-Money Laundering (AML): Robust procedures to detect and prevent money laundering activities. This encompasses customer due diligence, ongoing monitoring of transactions, and reporting any suspicious activities to SEPBLAC.
- Know Your Customer (KYC): Establishing strict procedures to verify the identity of customers. This involves collecting personal information such as names, addresses, dates of birth, and verifying identification documents.
- Countering the Financing of Terrorism (CFT): Developing strategies to prevent the use of cryptocurrencies for financing terrorism. This includes conducting regular risk assessments and monitoring for unusual or suspicious transactions that could indicate terrorist financing activities.
- Application Form: A detailed application form is required, which must include comprehensive information about the company’s business model, its primary and secondary activities, the types of services offered (e.g., trading, exchange, custody), and the geographical markets targeted.
- Memorandum and Articles of Association (MAA)
- This legal document must include a detailed description of the company’s structure, governance, objectives, registered office, share capital, and internal regulations. This document serves as the legal foundation for the company’s operations in Spain. Additionally, companies must submit annual financial statements to the Registro Mercantil to maintain transparency and accountability.
- Registro Mercantil (Commercial Registry):
- Legal entity must be registered with the Spanish Commercial Registry, which involves submitting key corporate documents such as the Articles of Incorporation, minutes of shareholders’ meetings, and resolutions passed by the board of directors. This registration is crucial for the legal recognition of the company in Spain.
Share Capital and Government Fees
- Minimum Share Capital: There is no specific minimum share capital requirement set for cryptocurrency companies. This means that companies can be registered without specifying a particular amount of capital, unless required by law for certain activities or when reviewed by the Bank of Spain. In such cases, the standard requirements for companies will apply.
- Government Fees: The government fees associated with company incorporation and licensing vary by region and the type of license. Typically, these include registration fees with the Registro Mercantil, notary fees, and taxes on documentation, which can range from 1,000 to 2,000 EUR.
Personnel Requirements
- It is necessary to appoint a Responsible Compliance Officer (Responsable de Cumplimiento) who ensures that the crypto platform adheres to all AML/CFT regulations. This individual should have relevant experience in financial services or blockchain technology.
Business premises requirements
- For obtaining crypto license in Spain, a physical office is generally not mandated, but it is important to note that specific business activities may require additional considerations regarding the presence of a physical office. These requirements can vary based on the nature of the business and services that are going to be provided.
- If the company does not plan to use an office space extensively, there are simplified options available, such as virtual offices or shared office spaces. Consulting with legal experts like those from Legalaes can provide more information on these options.
Roadmap of obtaining Crypto license in Spain
Obtaining a Crypto License in Spain involves several key steps, each requiring careful attention to compliance with both national and EU regulatory frameworks. The process is designed to ensure that cryptocurrency businesses operate within a secure and legal environment, adhering to the highest standards set by Spanish authorities like the Banco de España and CNMV (National Securities Market Commission).
For more detailed guidance and support throughout this process, contact our legal experts.
Eriks Fijalovs
Head of Blockchain and Crypto
Gathering Documentation
-Collection of necessary documentation for the company formation process, including a notarized and apostilled Power of Attorney (PoA) if shareholders are foreigners and cannot attend the signing in Spain.
-Verification of the chosen company name’s availability in the Central Commercial Register
-Definition of the company’s purpose, main business activity, and domicile.
-Selection of shareholders and directors (including options for corporate shareholders).
-Incorporation as an “S.L.” (Sociedad Limitada) or “S.A.” (Sociedad Anónima).
Registration with Public Authorities
-Appointment of a legal representative and obtaining the Spanish Tax Identification Number (NIF) for shareholders from the Ministry of Finance.
-Registration of the Articles of Incorporation with the Ministry of Finance within the legally required timeframe.
Preparation and Submission of License Application
-Preparation of tailored AML/KYC policies, ensuring compliance with Law 10/2010.
-Development of a business plan and financial forecast for three years.
-Submission of the license application to the Bank of Spain and the CNMV.
License Confirmation
-Review of submitted documents by the Bank of Spain and CNMV.
-Potential requests for additional information during the review process.
-Issuance of the crypto license upon successful review.
Opening a Corporate Bank Account
-Opening a corporate bank account in a Spanish bank, ensuring compliance with local AML/KYC regulations.
-Provision of necessary documentation, including business registration and compliance documents.
Implementing Operational Requirements
-Establishment of internal controls and record-keeping systems to ensure compliance with Spanish regulatory standards.
-Employee training programs to maintain compliance with AML/KYC obligations.
Operational launch
-Official launch of operations after completing all regulatory and compliance requirements.
-Ongoing compliance monitoring and regular updates to ensure adherence to the latest regulations by the Bank of Spain and CNMV.
Detailed Time Frames to Obtain a Crypto License in Spain
The process of obtaining a crypto license in Portugal involves multiple stages, each with its own timeline. Below is an estimated timeline for completing the licensing process:
1. Preparation and Documentation
Estimated Time Frame: 1-2 weeks
- Drafting AML/KYC Policies: Develop and implement Anti-Money Laundering (AML) and Know Your Customer (KYC) policies, ensuring they align with Spain’s regulatory requirements.
- Internal Control Systems: Establish robust internal controls to support compliance.
- Document Gathering: Collect all necessary documentation, including identification of directors, incorporation documents, and detailed business plans.
2. Submission of Application
Estimated Time Frame: 1-3 days
Application Filing: Complete and submit the application to the relevant Spanish authorities, such as the Bank of Spain and the Comisión Nacional del Mercado de Valores (CNMV). Ensure that all required documentation is included for a smooth processing.
3. Review and Processing by Spanish Regulatory Authorities
Estimated Time Frame: 3 months
- Initial Assessment: Spanish regulatory bodies, including the Bank of Spain and CNMV, will conduct a thorough review of the submitted application and supporting documents to verify compliance with national and EU standards.
- Compliance Review: The authorities will assess the company’s AML/KYC controls, business model, and internal procedures.
- Requests for Additional Information: If necessary, the authorities may request further documentation or clarification, which could extend the review period.
4. Registration and Confirmation
Estimated Time Frame: 1-2 weeks
Final Approval: Upon successful review, the regulatory authorities will approve the registration, confirming the entity as a licensed Virtual Asset Service Provider (VASP) or Crypto Asset Service Provider (CASP) in Spain.
Overall Estimated Time Frame – Approximately 4-6 months
Factors Affecting the Time Frame
- A well-prepared and comprehensive application can significantly expedite the process.
- The time required for Spanish authorities to review and respond to applications may vary depending on their current workload.
- More intricate business models or operations involving multiple jurisdictions may require additional scrutiny.
- Quick responses to any requests for additional information or clarification can help in avoiding delays.
It is essential to recognize that obtaining a crypto license in Spain involves a detailed and multi-step process, encompassing the preparation of comprehensive documentation, submission of a meticulously completed application, and undergoing thorough regulatory scrutiny. The time frame for obtaining the license generally ranges from 4 to 6 months, depending on the complexity of the business and the specific regulatory requirements. By ensuring that all compliance measures are rigorously followed and by utilizing the expertise of professionals like those at Legalaes, businesses can effectively navigate the licensing process, ensuring a smoother and more efficient journey toward obtaining their license.
Advantages of the Crypto license in Spain
01
Strong Regulatory Framework
Spain’s regulatory environment is robust yet adaptable, ensuring crypto businesses operate securely within well-defined legal boundaries. The clear guidelines foster an environment of trust and stability, allowing businesses to confidently innovate while adhering to stringent standards.
02
Increased Credibility
A crypto license from Spain significantly enhances a company’s credibility in the eyes of customers, investors, and partners. It signifies a commitment to operating within a regulated environment, which builds trust and fosters long-term relationships. By adhering to Spain’s stringent regulatory requirements, licensed entities demonstrate their dedication to transparency and legal compliance, which is particularly valued in the cryptocurrency industry.
03
Business-Friendly Environment
Spain has established itself as a welcoming jurisdiction for fintech and blockchain companies, thanks to its clear and supportive regulatory policies. The country’s progressive stance on cryptocurrency regulation provides businesses with the stability they need to grow.
04
Legal Clarity
Spain’s regulatory framework provides clear and precise legal guidelines for cryptocurrency businesses. This legal clarity reduces the risk of regulatory uncertainty, allowing companies to focus on innovation and growth without the constant worry of compliance issues.
05
Consumer Protection
The Spanish licensing process includes robust consumer protection measures, such as strict AML (Anti-Money Laundering) and KYC (Know Your Customer) protocols. These measures are designed to safeguard consumer interests, ensuring that businesses not only protect customer funds but also operate in a transparent and accountable manner.
06
Competitive Advantage
Operating under a Spanish crypto license gives businesses a distinct competitive edge, particularly within the European market. A license from Spain signals that a company adheres to high regulatory standards, making it more attractive to customers seeking secure and reliable services.
07
Operational Efficiency
Adhering to Spain’s regulatory requirements often results in more streamlined and efficient business processes. The clear guidelines provided by the Spanish regulatory framework help businesses optimize areas such as customer onboarding, transaction monitoring, and compliance management.
Links for legislation related to Crypto business in Spain
The Bank of Spain oversees the regulation of financial institutions in Spain, including those involved in cryptocurrency operations. It ensures compliance with national and EU financial regulations, focusing on stability and security within the financial system.
The CNMV is responsible for supervising and inspecting Spain’s securities markets, including cryptocurrency-related activities. It ensures transparency and proper market functioning, safeguarding investor interests.
SEPBLAC is Spain’s Financial Intelligence Unit responsible for preventing money laundering and terrorist financing. It monitors financial transactions and enforces AML regulations for businesses, including those in the cryptocurrency sector.
The Spanish Commercial Registry is essential for business registration and compliance. All companies, including crypto businesses, must be registered here to operate legally in Spain. The registry provides transparency and legal recognition of business activities.
The Markets in Crypto-Assets (MiCA) Regulation is an EU-wide legal framework designed to regulate the cryptocurrency market. It sets out clear rules for crypto asset issuers and service providers, aiming to enhance consumer protection and ensure market integrity across the European Union, including Spain.
VI. Agencia Tributaria
Spanish Tax Agency, is responsible for enforcing the tax laws and ensuring compliance with the Spanish tax system. The agency also provides guidelines and resources for businesses to understand their tax obligations, particularly in the context of emerging financial sectors like cryptocurrency.
Taxation of Cryptocurrency Companies in Spain
Taxation of cryptocurrency companies in Spain is a critical component of the regulatory framework, reflecting the government’s effort to integrate digital assets into the broader financial system while ensuring compliance with tax laws. Below are the key elements of how crypto companies are taxed in Spain:
1. Corporate Tax (Impuesto sobre Sociedades)
1. Corporate Tax
- Business Income: Cryptocurrency companies are taxed on their income like any other business. The standard corporate tax rate is 25%, with a reduced rate of 15% available for newly formed companies during the first two years of profitability.
- Revenue Recognition: Companies must report income from cryptocurrency transactions as part of their taxable income, calculated at the fair market value at the time of the transaction.
- Deductions and Expenses: Business expenses incurred in earning income from cryptocurrency activities can be deducted. This includes costs related to technology, security, salaries, and other operational expenses.
2. Dividend and Withholding Tax (Impuesto sobre la Renta de No Residentes)
2. Dividend and Withholding Tax (Impuesto sobre la Renta de No Residentes)
- Withholding Tax: Dividends paid to non-residents are subject to withholding tax, generally at 19% for EU residents and 24% for non-EU residents. Rates may vary based on double tax treaties.
- Dividends: Dividends distributed from profits derived from cryptocurrency activities are taxed according to the applicable withholding tax rates.
3. Value Added Tax (IVA)
3. Value Added Tax (IVA)
- VAT Application: The standard VAT rate in Spain is 21%. However, transactions involving cryptocurrencies may be exempt from VAT under specific conditions, aligning with EU directives.
4. Capital Gains Tax (Impuesto sobre la Renta de las Personas Físicas)
4. Capital Gains Tax (Impuesto sobre la Renta de las Personas Físicas)
- Profits from the sale or exchange of cryptocurrencies are subject to capital gains tax, which varies between 19% and 26%, depending on the amount of the gain.
5. International Transactions
5. International Transactions
Cross-Border Transactions: Companies engaging in international cryptocurrency transactions must comply with Spain’s regulations on the movement of capital and international tax reporting standards.
6. Tax Reporting and Compliance
6. Tax Reporting and Compliance
- Companies must regularly report their financial activities, including cryptocurrency transactions, to Spanish tax authorities. Proper classification and documentation are crucial for compliance.
- Strict adherence to tax reporting and compliance guidelines is essential to avoid penalties.
7. Special Considerations
7. Special Considerations
- Tax Implications for Digital Assets: Depending on the nature of the transaction, the use of cryptocurrencies as a means of payment or investment may have different tax implications. Specific transactions might trigger additional reporting requirements or tax treatments.
8. Regulatory Guidance and Updates
8. Regulatory Guidance and Updates
- Spanish tax authorities frequently update regulations concerning cryptocurrencies. Companies must stay informed about any changes to ensure compliance.
- It’s essential for companies to actively monitor and comply with ongoing changes in the legal framework. The Spanish government regularly updates its guidelines on the taxation and regulation of cryptocurrencies, reflecting the evolving nature of the digital economy. Companies should consult with legal and tax experts to ensure that they are aware of the latest obligations and opportunities.
FAQ about Crypto license in Spain
1. What is a VASP license in Spain?
A VASP license allows companies to engage in virtual asset activities like exchanging digital assets or safeguarding them for clients. While the license covers a range of services, it doesn't strictly categorize them. The main focus is on compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) regulations, ensuring these activities adhere to stringent legal standards
2. How do i apply for a VASP license in Spain?
To apply for a VASP license, you must submit an application to the Bank of Spain through their Electronic Registry. The application process involves providing detailed documentation on your business model, compliance procedures, and security measures.
3. What are the key requirements for obtaining a VASP license in Spain?
Key requirements include incorporating your business in Spain, meeting any minimum share capital requirements, establishing comprehensive AML/KYC procedures, and appointing a local compliance officer. Additionally, a physical office or at least a legal address within Spain may be required, depending on the nature and scope of your business operations.
4. What are the benefits of having a Spain VASP License?
The benefits include regulatory compliance, enhanced credibility, access to banking services, and increased trust from investors and customers, which can help expand your business within Spain and across the European Union.
5. How long does it take to obtain a VASP license in Spain?
6. What is a CASP lincese in Spain?
CASP stands for Crypto Asset Service Provider, a license that will be introduced in Spain under the EU's MiCA regulations. It will replace the current VASP (Virtual Asset Service Provider) license, aligning Spain with the broader EU regulatory framework for crypto assets. The transition to this new type of licence will take place in December 2024.
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