Singapore-based cryptocurrency exchange Crypto.com has recently announced its receipt of a Virtual Asset Service Provider (VASP) registration from the Bank of Spain, marking a significant milestone for the platform. As a result, the exchange will now be able to offer a suite of its products and services to users residing in Spain. The country’s central bank, Bank of Spain, plays a crucial role in determining which platforms are legally allowed to trade digital assets within the country, under the compliance and regulations set by the European Union’s Markets in Crypto Assets (MiCA) legislation.
The addition of Crypto.com as a VASP in Spain highlights the ongoing growth and acceptance of the cryptocurrency industry, but it’s not without potential drawbacks. For one, as MiCA legislation becomes law next year, digital asset firms will face increased scrutiny and more stringent rules regarding anti-money laundering (AML) and data security procedures. This could mean that Crypto.com and similar platforms will need to invest further in ensuring compliance with new regulations.
This development comes after the company underwent a thorough review of its compliance with Anti-Money Laundering Directive (AMLD) and other financial crimes laws, which are required for MiCA-based VASP licenses. Crypto.com CEO Kris Marszalek has expressed enthusiasm for working closely with the Bank of Spain, stating that they “look forward to continuing to work with the Bank of Spain as we launch our products and services in-market and providing users with the comprehensive, safe and secure crypto experience that they desire”.
The exchange platform, known for enabling clients to buy, sell and conduct trading with cryptocurrencies, also offers a debit card that allows users to spend digital assets while earning rewards. However, a report from the Financial Times earlier this week suggested that the exchange’s staff were trading tokens for profit. Crypto.com responded, stating that it did not rely on proprietary trading as a source of revenue, contrary to the newspaper’s claim.
It’s worth noting that Crypto.com also announced it would wind down its institutional service for American clients earlier this month. Despite this, its latest milestone in receiving the VASP registration reiterates the growing adoption of cryptocurrency and blockchain technology worldwide. As countries and financial institutions continue to recognize the benefits of digital asset trading and implement regulations for its safe and secure use, users can look forward to an increasingly transparent, trustworthy, and robust crypto market.
Source: Decrypt
