Coinbase, the largest crypto exchange in the US by daily trading volume, has obtained an Anti-Money Laundering (AML) registration from the central bank of Spain. Securing the AML registration aligns with the Coinbase expansion plan dubbed “Go Broad, Go Deep.”
The Coinbase team stated that the second phase of its expansion plans will focus on entering global markets. In this phase of global expansion Coinbase aims at meeting the licensing and registration requirements across the world.
Coinbase Expands to Spain
A September 22 blog post illustrated the crypto exchange fulfilled the AML registration requirements to enable the firm to expand its product offering. The approval of AML registration allows Coinbase to explore viable opportunities in Spain.
On the other hand, the Coinbase user will be allowed to retain custody of their digital assets on the trading platform. Also, Coinbase retail and institutional clients will trade their digital assets through the Euro, the Spanish legal tender.
The report indicates that securing the AML registration enables the crypto exchange to offer Spanish users a complete suite of products and services. Besides expanding the product offering the approval of the AML registration enables Coinbase to meet the compliance requirement with the Spanish legal framework.
Coinbase Global Expansion Plan
An announcement conveyed by Coinbase vice president of international and business development Nana Murugesan revealed that the crypto exchange seeks to become a compliant firm in different jurisdictions. The executive revisited the virtual asset service provider (VASP) registration Coinbase secured a couple of months ago. Murugesan was delighted that Coinbase received VASP registration approval in Italy, the Netherlands, and Ireland.
Additionally, the official confessed that Coinbase had secured an in-principle approval in Brazil, Canada, and Singapore. Murugesan added that by securing the Spanish AML registration, Coinbase joins other exchanges seeking to gain dominance in Spain.
A few weeks ago, the Singaporean crypto exchange Crypto.com received VASP regulatory approval from the Spanish regulators. In a June report, Crypto.com confirmed that receiving the final nod from the Bank of Spain allows the exchange to offer a wide range of products.
Reportedly, the approval of Crypto.com VASP and Coinbase AML registration demonstrated that Spain has taken a positive approach to regulate crypto assets. In a recent study, approximately one-third of the Spanish have expressed a growing interest in crypto assets.
In contrast, 29% of Spanish adults are optimistic that crypto holds the future of the finance sector. In the research findings, crypto has emerged as the second most preferred payment method, overtaking conventional bank transfers.
The study demonstrated that around 178 blockchain firms have established their presence in Spain. The positive outlook of crypto in Spain obliged the regulators to develop policies that improve the attractiveness of the digital space.
EU Regulators Seeking to Provide Clarity on Digital Assets
The report indicates that in 2021, the Bank of Spain established the AML requirements. According to the bank, the new provision aimed at ensuring that VASP in the region meets the global AML requirements. Under the AML regulations, crypto exchanges are required to implement measures to address money laundering and terrorism financing.
Besides formulating the AML requirements, the Spanish regulators have established solid strategies to support the enactment of Market in Crypto Assets Regulations (MiCA). The MiCA regulations seek to provide regulatory clarity for crypto assets and will take effect in December next year.
Unlike other jurisdictions seeking to implement clear rules on digital assets, the European Union has demonstrated its positive stance on crypto assets. Subsequently, the EU has recognized the benefits of emerging technologies such as crypto assets.