Cryptocurrency is a digital currency that uses cryptography to secure and manage transactions, as well as to create new currencies within the blockchain network (it is an ecosystem of blocks technology that, without the intermediation of third parties, allows to carry out digital transactions in a safe, fast and decentralized way).
Cryptography is used to create new units, being P2P technology the one that makes it not dependant on any government or country.
In Spain, for a company to be able to engage in the exchange of cryptocurrencies, it is necessary for it to have a license called VASP (virtual asset service provider). This license is granted by the Bank of Spain, and they seek the protection of end users and the regulation of cryptographic’s trading activities, making the company a Virtual Assets Service Provider.
How to obtain the license in Spain?
It would be necessary to register with the Bank of Spain as a provider of virtual currency exchange services for fiduciary currency and as a custodian of electronic purses.
How is the license application submitted?
There are three possibilities:
- Electronic: its use is mandatory for companies and recommended for individuals. The necessary documentation is submitted electronically through the Electronic Registry of the Bank of Spain.
- By mail: recommended for individuals. The necessary documentation must be addressed to the Bank of Spain.
- In-person: only for individuals. The necessary documentation can be submitted at the General Registry of the Bank of Spain.
What documentation must go in with the application?
- AML policy.
- Risk analysis policy.
- Application form for providers of currency exchange services.
- Application form for Custody Change Service Providers.
- Self-employed certificate (this only applies to individuals).
- Assessment form suitability for service providers of exchange of virtual currency for fiduciary currency and custody of electronic wallets.
- Criminal record.
- Identity documents.
Resolution deadline
Once the application has been submitted, the Bank of Spain has a period of 3 months to resolve from the receipt of said application.
If any deficiency is detected in the application the Bank of Spain will make a further request for correction or for additional necessary documentation or information, which must be provided within the term provided as otherwise the application will be rejected.
Written by Pilar García Fernández.
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