Banco de Espana’s VASP Registry Goes Live

Banco de España has opened its registry for Virtual Asset Service Providers (VASPs). In a statement on its website, Spain’s Central Bank clarified its position regarding the registration requirements for companies and institutions wishing to provide cryptocurrency-related services in Spain.

Under the VASP registration scheme, applicants will be required to submit numerous pieces of documentation, including risk assessments, and anti-money laundering and terrorist financing policies.

The Spanish Central Bank also confirmed that all companies who plan to provide cryptocurrency services in Spain will be required to register. This includes incumbents like banks and companies not physically located in Spain.

The new rules appear to be quite onerous, and there are hefty penalties for non-compliance. For example, companies who fail to register could face fines starting at 150,000 EUR, and potentially up to 10m EUR.

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Once registered, so-called “VASPs” will be subject to existing regulatory frameworks in the EU. In particular, they will be considered “obliged entities” under the European Anti-Money Laundering Directive.

Do the rules for VASP registration in Spain go too far? More generally, what impact do you think regulation is going to have on the cryptocurrency and blockchain industry?