Natural or legal persons must register when the services linked to virtual currencies are located in Spanish territory. #Cryptocurrencies #Procedures #MoneyLaundering
In October 2021 the register of service providers for the exchange of virtual currency for fiat currency and the custody of electronic wallets was set up. This register was provided for in the second additional provision of Law 10/2010, introduced by Royal Decree-Law 7/2021 of 27 April.
Table of contents:
Who must register with the Banco de España?
What documents do I need to register?
How long does the registration process take?
Who must register with the Banco de España?
Natural or legal persons must be registered when the provision of virtual currency exchange and custody services, the establishment or the management of their activities are located in national territory, regardless of the location of the addressees to which they refer. Furthermore, not only providers not subject to supervision by a competent authority, but also those regulated entities already registered in the relevant administrative registers kept by the competent authority that provide these services, must be registered.
For legal persons, this registration will be carried out electronically through the Banco de España's Electronic Register, using any of the authentication systems accepted by the Banco de España.
What documents do I need to register?
In order to be entered in the register, the corresponding forms must be submitted together with the rest of the required documentation. In this respect:
Depending on whether the exchange service or the custody service (purse) is provided, form CRIPTO01 (virtual currency exchange activities) or CRIPTO03 (custody activities) must be completed.
In both cases, form CRIPTO05 must be completed, relating to the declaration of commercial and professional integrity, both of the applicant and, where applicable, of the persons who effectively manage the entity.
In addition, the following must be submitted together with the forms: certificate of absence of criminal record; identity documents; the applicant's manual for the prevention of money laundering and the financing of terrorism; and a risk self-assessment report.
In addition, through the registration procedures in which the firm has participated, it has been verified that the registration process is subject to the intervention of:
the Bank of Spain, which will supervise the registration obligation, as well as the suitability of the applicant and its management body, through the questionnaires of good repute, which will be accompanied by a criminal record certificate;
and SEPBLAC, which will review in detail the AML/CFT procedures submitted and the risk analysis, paying particular attention to the flow of funds. It should be noted that SEPBLAC approval is required in order to be duly registered.
How long does the registration process take?
As regards the practical aspects of the process, it should be noted that the Banco de España has 3 months to resolve the procedure and, therefore, to proceed with the registration of the entity or individual. However, it is usual for the Banco de España to send requests for additional information that paralyse the procedure, which means that the procedure takes longer than 3 months.
Royal Decree-Law 7/2021, of 27 April, granted nine months from its entry into force to register crypto-providers that were already operating in Spain when it came into force, which means that these entities or persons obliged to register in the Banco de España's cryptocurrency registry only had until 29 January to comply with their obligation without being sanctioned.
Nowadays, if you are considered a regulated entity, you must register in the registry before starting to carry out your activity in Spain. At Easylex Abogados we have carried out several successful registrations and we can help you draft both the money laundering prevention manual and the necessary risk analysis documents as well as carry out all the formalities on your behalf to ensure compliance with the regulations.
If you need help to comply with the requirements of the Bank of Spain's register of cryptocurrency exchange and custody service providers, our Marbella law firm is at your disposal. Do not hesitate to contact us so that we can advise you and guide you through the registration process. We look forward to hearing from you!