The world’s largest cryptocurrency exchange, Binance, has registered a local unit with the Bank of Spain as a platform for virtual currencies with procedures in place against money laundering and financing of terrorism.
The bank said that registered providers have to comply with rules concerning money laundering and terrorism financing, however, it does not supervise the platforms’ financial and operating risks.
Binance tweeted last week emphasizing that its move is in conformity with the laws of the Spanish central bank and the registry in Spain will allow it to offer crypto asset exchange and custody in the country.
As the European Union develops new regulations on the industry, this registration in Spain shows that Binance continues to gain pace in Europe considering it was also recently added to national registries in France and Italy.
In order to create and sell digital tokens in the European Union, cryptocurrency companies will require a license and client protections, according to new regulations recently adopted by the EU to calm a volatile market.
Since new regulations are expected later in 2023, there is now no cross-border approval of crypto services throughout the EU. However, this will change.
Globally, there is no regulation of crypto assets in the European Union, national operators are simply needed to demonstrate safeguards to prevent money laundering.