bank of spain - Pwim.Net

Bank of Spain Plans to Look at Design Proposals and Economic Implications of a CBDC

Banco de España, Spain’s central bank, published its strategic plan that outlines its goals over the next four years. According to the plan, besides examining the European Central Bank’s trends and policies within the Spanish economy, Spain’s central bank would study different design proposals and evaluate the economic implications, including the systematic and financial risk of a central bank digital currency (CBDC) in the country.

The Bank of Spain would also conduct research on the impact of negative interest rates on banks, coronavirus-related challenges on markets, and many other areas on CBDC efforts.

The Research Not Much on CBDC Issuance

However, this does not imply that the Bank of Spain has plans to issue its own Central Bank Digital Currency. While the plan does not focus so much on the potential CBDC efforts, it says that CBDC research is a priority under the theme of “New Technologies and Information Sources.” The plan says:

“The implications for the financial system and the economy as a whole of the introduction of a central bank digital currency will be analyzed, considering various design proposals and including aspects relating to digital identification.”

Such “priority” research would start this year and conduct through the end of 2021.

Pablo Hernández de Cos, the current governor of Spain’s Central Bank, stated: “Regardless of its importance, expanding access to a Central Bank’s balance sheet by making a CBDC available to households & non-financial corporations is only one of many ways in which tech innovation may help enhance the monetary & payment system.”

Spain and the Euro

As a member of the eurozone, Spain does not have to issue its own CBDC. The country has been using the euro since 2020. The European Central Bank is currently considering issuing a CBDC through committee work, which includes Spanish central bankers.

Juan Ayuso Huertas, Director General of Spain’s Central Bank, is adequately active in the research of a digital euro. He is a member of the High-Level Task Force on Central Bank Digital Currency that facilitated the production of the digital euro report.

Under the leadership of the current European Central Bank (ECB) president, Christine Lagarde, the ECB has been actively researching on a CBDC. The ECB recently published a detailed report regarding the potential impact of a digital euro and has unveiled consultations with the public regarding the implications of a digital euro. The future of the work concerning the issuance of a digital euro would be determined in mid-2021.

Binance Taps Operating License from the Bank of Spain

Binance cryptocurrency exchange has received the license to operate in Spain through its subsidiary in the country, Moon Tech Spain SL.

As announced by the exchange, the application for the permit was made back in January this year, and approval was granted on July 7.

With the new license, Binance said it would be able to operate as a Virtual Asset Service Provider (VASP) in the country, with the ability to offer crypto asset exchange and custody services in Spain in compliance with the requirements of its central bank’s anti-money laundering and counter-terrorist financing (AML/CTF) rules.

In addition to overseeing its AML and CTF compliance measures, the Bank of Spain is legally obligated to regulate the compliance of the local entity and its directors with the commercial and professional honorability requirements.

“Effective regulation is essential for the widespread adoption of cryptocurrencies,” said Changpeng Zhao (CZ), founder and CEO of Binance, “We have invested significantly in compliance and introduced AMLD 5 and 6 compliant tools and policies to ensure that our platform remains the safest and most trustworthy in the industry. Moon Tech’s registration in Spain is an acknowledgement of the hard work and commitment of our teams to providing a platform that places user protection above all else.”

That the Bank of Spain granted Binance this license is a feather in the exchange’s cap seeing it has previously been reprimanded by the regulator for operating in the country illegally. Infact, Binance got a lot of those sanctions last year, particularly from European Union countries, most of whom it is now working to appease.

The exchange is deepening its friendship with UK regulators and has also received licenses to operate in Italy and France respectively. Outside of the EU, Binance’s influence has stretched to Bahrain, the United Arab Emirates, and even Kazakhstan where it met with government officials to collaborate on helping to introduce progressive regulations that can bolster its advancement into the digital economy.

Crypto Bank BVNK Secures Operational License from the Bank of Spain

London-based digital currency banking service provider, BVNK has announced it is now a licensed Virtual Assets Service Provider (VASP) with the Bank of Spain.

While there are a number of startups that offers related products and services such as BVNK, the startup’s offering is positioned to enable users to access financial services more easily.

BVNK’s business proposition is one that seeks to make its platform a one-stop shop that can cater to the needs of all investors. The platform offers a business account that enhances all user’s accessibility to foreign currencies like the United States Dollar (USD), the Euro, and the British Pound Sterling (GBP) amongst others.

Users will also gain access to crypto wallet services where they can also keep custody of their funds. BVNK offers yield products that enable the startup’s users to earn rewards in the form of interest on their capital. BVNK’s products also include its market offering, a trading engine that is designed for large-volume transactions.

The BVNK Insights is an analytics tool that provides all of the platform’s users with analytics into market trends, enabling them to make informed trading decisions. With its presence in Spain, prospective users will be able to gain access to the products and services as well as the host of others that it will be launching in the near future.

“The registration in Spain will be the first of many similar landmarks and demonstrates our commitment to becoming a globally recognised business that holds itself against the highest international regulatory standards,” said Maximilian von Both, chief legal, risk, and compliance officer, BVNK.

Spain is now growing to become a very generous European nation alongside France, Italy, and Cyprus as digital currency trading platforms are tapping licenses through regulators in these countries to gain access to the rest of Europe.

Kraken Secures E-Money License in EU, Expands Virtual Asset Services in Spain

Key Takeaways

Kraken receives E-Money Institution (EMI) license from the Central Bank of Ireland.

The company also registers as a Virtual Asset Service Provider (VASP) in Spain.

These authorizations are part of Kraken’s European expansion strategy.

Regulatory Milestones in European Expansion

San Francisco-based cryptocurrency platform Kraken has obtained an E-Money Institution (EMI) license from the Central Bank of Ireland, according to a Business Wire release dated September 26, 2023. Concurrently, Kraken has also secured registration with the Bank of Spain as a Virtual Asset Service Provider (VASP). These developments underscore Kraken’s commitment to regulatory compliance and its focus on European markets.

Enhanced Services in the EU and Spain

The EMI license, granted to Kraken’s Irish subsidiary, allows the firm to broaden its EUR fiat services in collaboration with European banks. This will benefit clients in the 27 European Union (EU) member states and European Economic Area (EEA) countries. In Spain, the new VASP registration enables Kraken to offer cryptocurrency exchange and custodial wallet services to Spanish residents.

Strategic Importance

Curtis Ting, Kraken’s Vice President of Global Operations, stated, “Today’s announcement marks another important milestone in our European expansion strategy.” He emphasized the company’s confidence in the European regulatory landscape and expressed gratitude towards the Central Bank of Ireland and the Bank of Spain for their “constructive approach to regulating industry growth.”

Company Overview

Founded in 2011, Kraken has a longstanding reputation for robust security and client service. Over the past year, the company has diversified its offerings, launching an NFT marketplace, the Kraken Pro advanced trading interface, and a revamped consumer web experience. Kraken serves more than 10 million clients globally, offering trading in over 200 digital assets and six national currencies.