Banck of Spain publishes registration requirements for cryptocurrency providers

The Spanish financial institution disseminated the rules that digital currency providers must comply with, considered a positive development for the crypto sector

The main Bank of Spain published on its official website the forms and requirements that must be met by new providers, individuals and legal entities who wish to offer cryptocurrency services for their registration in accordance with the provisions of law 10 / 2010 on April 28 on money laundering and terrorist financing.

All persons, legal and natural, will have to grant the bank a “manual for the prevention of money laundering and terrorist financing“, where they will explain in detail to their clients, “the internal flows of their information“, as well as the guidelines to follow and the “precise instructions on how to proceed in case they may be related to illegal activities”.

Additionally, the bank is demanding an “suitability assessment” form for both the requesting legal entities and for each of the individuals who will be effectively managing the requesting entity, which must be signed by each member.

In order to effectively manage these requirements, the Bank of Spain established that individuals can deliver the required documentation by post and in person at the processing mailbox. While the legal ones can carry out their procedure through the electronic registry of the financial institution with all the data and the required documentation.

Risk control

For its part, the bank will submit to evaluation the different business methods presented, their systems or channels that the provider uses for income, as well as the “customer typologies and geographical areas where the provider offers its services, specifying the one with the highest risk.”

Once the documentation has been delivered for registration, the financial institution will take 90 days to review all the documentation presented and “resolve from the replacement and registration of the company.”

In that period, the bank has the power to verify compliance with the established parameters and in those cases that do not comply with the provisions of the regulations or require any other information or document from the supplier, it will proceed to freeze the procedure until obtaining the additional document from the supplier of the cryptocurrency service.

M. Rodríguez

Source: cointelegraph

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