Regarding AML there are no additional requirements besides the “Special Registry of exchange of virtual currency for fiat currency and electronic wallet custodian service providers”. However, in order to successfully comply with this registration, there are some documentation requirements to be met: - To fill in the corresponding form according to the intended activity (a) exchange of virtual currencies for fiat currencies (CRIPTO01); and/or (b) custody of electronic wallets (CRIPTO03).
- To fill in a general form (CIPTO005) corresponding to suitability assessment for the applicant legal entity and, a suitability assessment form for each of the natural persons effectively managing the entity, signed by each of them.
- Criminal record certificate of the applicant legal entity and of each of the natural persons who effectively manage the entity.
- Copy of the national identity card/NIE/NIF/foreign identification document of the legal entity applying for registration and, in addition, of all the natural persons who effectively manage the entity.
- Anti-Money Laundering and Terrorist Financing Manual, including certain specific information such as customer admission policy; description of customers who may entail a higher-than-average risk and the measures to be taken to mitigate it; due diligence procedure; internal information flows; functioning of internal control bodies, among others.
- Risk analysis policy, including certain specific information such as identification and assessment of risks based on types of customers, countries or geographic areas, products, services, operations and distribution channels; information on the business model, services offered and characteristics of the entity; foreign exchange flows, whenever carried out; any other factors that may be considered to be risk factors.
Finally, no physical presence is required to successfully comply with the registration. | Advertising of cryptoassets: Spanish National Securities Market Commission (CNMV) Circular 1/2022, relating to the advertising of cryptoassets presented as investments defines the objective and subjective scope of cryptoasset advertising, establishes the criteria to be followed when promoting these assets, and provides for a supervisory regime including prior notification of such advertising activity. All advertising of cryptoassets made by a natural or legal person to investors, including potential investors, in Spain in which such assets are implicitly or explicitly offered or marketed as an investment are subject to this Circular. This is presumed to be the case when the purchase of cryptoassets is promoted, or where reference is made to current or future profitability, price or value of such cryptoassets, suggesting them to be an investment opportunity, even when they can be used as a medium of exchange. Certain advertising activities are excluded from the scope of the Circular, such as the advertising of cryptoassets (i) that cannot be, due to their nature, the object of investment, (ii) that are considered financial instruments, (iii) that are considered as utility tokens, and provided that no revaluation expectations are offered and where the volume and conditions offered are consistent with the inherent rights associated with the cryptoasset in question, (iv) that are considered as NFTs which are not offered as a mere investment. The Circular also does not apply to (i) white papers of new cryptoasset issuances, (ii) corporate advertising campaigns with generic information about the cryptoasset provider, including sports sponsorships, (iii) presentations to analysts or institutional investors; (iv) independent analyst publications that are not sponsored or promoted; and (v) advertising for cryptoasset courses or workshops that encourage investment in cryptoassets and are not offered free of charge or for a symbolic price. The CNMV will carry out an ex-post control, excluding mass advertising campaigns (those aimed at more than 100,000 people through any advertising medium) which will be subject to ex-ante supervision, with the CNMV requiring at least ten working days prior notification of the campaign before it is launched. Implications of the use of DLT in securities markets: The LMVSI brings relevant developments to promote the use of DLT or other similar technologies for the issuance, registration, transfer or administration of all financial instruments, as it is set out in Article 2.1 of the LMVSI. In particular, DLT-based systems will have to: - Ensure the integrity and immutability of the emissions that take place within them;
- Directly and indirectly identify the holders of rights in tradable securities; and
- Determine the nature, characteristics and number of the securities.
Moreover, Security Token Offerings ("STOs") can be carried out without a prospectus, if they comply with the requirements set forth in the LMVSI. However, as a new feature of the LMVSI, in cases where transferable securities are represented by DLT-based systems, it will always be necessary to determine which entity is responsible for the administration of the registration and registration of securities represented by DLT. Changes to the crypto-asset market The LMVSI includes a new sanctions regime which includes serious infringements through an express reference to the regime of sanctions relating to cryptoassets included in MiCA. Therefore, the LMVSI directly applies MiCA with regards to the sanction regime. In addition, the LMVSI extended the scope of action of the Spanish National Securities Market Commission ("CNMV") in this market. Thus, Article 247 of the LMVSI establishes that the CNMV may subject to authorisation and control the advertising of crypto-assets presented as investment objects which, as they are not considered tradable securities, could be excluded from the activities contained in this law. Nevertheless, according to the LMVSI, the Bank of Spain will exercise the supervision, inspection, and sanctioning functions in relation to the obligations laid down in MiCA regarding issuers of electronic money tokens and asset-referred tokens. |
Social Media cookies collect information about you sharing information from our website via social media tools, or analytics to understand your browsing between social media tools or our Social Media campaigns and our own websites. We do this to optimise the mix of channels to provide you with our content. Details concerning the tools in use are in our privacy policy.