The bank of Spain has registered the local unit of Binance, the world’s largest cryptocurrency exchange, as a digital currency platform.
The bank said that registered companies must comply with rules regarding money laundering and terrorist financing, but added that it does not oversee the financial and operational risks of the platforms, and that inclusion does not imply approval of their activities by the body.
Binance, which has around 120 million users worldwide, tweeted on Friday that registration in Spain will allow it to offer cryptocurrency brokerage and custody in the country in compliance with central bank rules.
The filing signals that Binance is gaining traction in Europe, after France and Italy also included it in their national filings in recent months, as the European Union prepares new regulation on the sector.
Cryptocurrency companies will need a license to issue and sell digital tokens in the European Union under new rules agreed last week by the bloc to tame the volatile market.
Under current rules, there is no need for cross-border approval of digital asset services in the European Union, but that will change with new rules due at the end of 2023.
Globally, cryptocurrencies are largely unregulated, with operators in the European Union only being required to show controls to combat money laundering.
A French member of the European Parliament asked France’s market regulator earlier this week to review its decision in May to register Binance, citing a recent Reuters investigation into money laundering on the platform.
The Reuters report found that Binance served as a conduit for laundering at least $2.35 billion in illicit funds.
Source: CNN Brasil
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