Manimama's experts are well versed in the complexities of cryptocurrency regulation and are committed to sharing their findings with businesses and individuals navigating this dynamic sector
Indeed, our legal team recently finalized a comprehensive study on the national implementation of the Markets in Crypto-assets Regulation (MiCA) in various EU countries. The legal research not only highlights the differences in how MiCA is adopted at the national level, but also offers standard rules for compliance. Today we offer you an insight into the specifics of obtaining a cryptocurrency license in Spain under the new MiCA provisions.
Current requirements (prior to MiCA implementation)
To open a crypto license in Spain, the following requirements must be met:
1) Register with the SCB (Spanish Central Bank Registry);
2) Register SL (Sociedad Limitada) – a legal entity, the Spanish equivalent of LLC (Limited Liability Company);
3) Apply for a crypto license in Spain;
4) Purchase or rent a physical office in Spain;
5) All beneficiaries must have an impeccable reputation;
6) Develop a realistic business plan that includes a strategy, a list of platforms, and how to secure clients and protect them;
7) Open a bank account and obtain financial approval from the Central Bank of Spain;
8) Employ staff with experience in the field (incl. AML Officer);
9) Strictly comply with AML regulations.
Has the jurisdiction enacted a law/draft law implementing MiCA?
Bill 6/2023 on the Securities Markets and Investment Services (“new LMV”)
Who is the regulator under the law/draft law implementing MiCA?
The National Stock Market Commission (“CNMV”) and the Spanish Central Bank (“SCB”)
Requirements for future CASPs stipulated by the national legislation implementing MiCA, the presence of national peculiarities
Meet requirements set out in MICA.
Virtual Currency Service Providers have to comply with the following provisions in accordance with the authorisation requirements imposed by MiCA:
-must register with the SCB Registry:
– have to file the following forms:
CRIPTO01: For service providers that exchange fiat money for virtual currency.
CRIPTO03: For virtual wallet custody service providers
CRIPO05: For the evaluation of the suitability of both the company and its directors (a separate form must be signed by each director).
– the following documents are required: the company’s Tax Identification Number (“NIF”); and criminal records (no older than three months) for both the company and its directors.
The period of time by which the CASP must comply with the new requirements, as well as the procedure for notifying the regulator of compliance with the new requirements
These provisions have not yet been adopted.
Is there a transition period before the full implementation of MiCA?
The country will apply a 12-month grandfathering period and during that time, MiCA-authorised and unauthorised firms will “operate at the same time”.
The ability of a CASP from a jurisdiction with a transition period to operate freely in a jurisdiction without a transition period starting from January 1, 2025
These provisions have not yet been adopted.
Liability provided for CASPs that continue to operate at the place of registration without meeting the new requirements
If CASPs do not comply with the registration requirements, such conduct could be considered a very serious infringement of Spanish law, and the entity or individual will be subject to sanctions imposed by the SCB.
Fines:
In the case of a natural person – 700,000 euros.
In the case of a legal entity:
– 5,000,000 euros; either
– three percent of its total turnover during the preceding year, in accordance with the latest available financial statements approved by the management body for the infractions contained in letter a) of article 307.1 of this law; either
– twelve and a half percent of its total turnover during the preceding year, in accordance with the latest available financial statements approved by the management body for the infractions contained in letters b) and c) of article 307.1 of this law; either
– five percent of its total turnover during the preceding financial year, in accordance with the latest available financial statements approved by the management body for the infractions contained in letter d) of article 307.1 of this law.
However, the infringement will be considered “not very serious” if the provided services were occasional or isolated.
Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
