As shared in the official press release, Coinbase has registered as a cryptocurrency exchange and custodian wallet provider with the Bank of Spain. This registration will allow the company to extend a full suite of products and services to both retail and institutional users in Spain – all in compliance with the country’s legal framework.
Following Coinbase’s registration, users in Spain will be able to access various cryptocurrency services including having custody of crypto assets, buying and selling with legal tender, and trading against other crypto assets.
The demand for cryptocurrencies in Spain has been on the rise. According to the official statement, 29% of Spanish adults believe that crypto will be the future of finance. Moreover, cryptocurrencies have become the second most popular payment method in the country, surpassing bank transfers. Additionally, research by Bitnovo found that 60.7% of citizens are interested in purchasing cryptocurrencies for long-term investments and 35.7% for making payments. The country currently boasts 178 Blockchain startups in the financial services sector and the demand for blockchain skills has reportedly exceeded projections.
Context-wise, Coinbase has highlighted the adoption of the Markets in Crypto-Assets Regulation (MiCA) by the European Union as a supportive legal framework for its expansion. As the company emphasised, the regulatory clarity that MiCA offers demonstrates that the EU acknowledges the potential that emerging technology can provide.
The wider context
According to Coinbase, securing an AML registration with the Bank of Spain is part of the company’s wider strategy – which is built on the current momentum for crypto worldwide. Coinbase is currently expanding its international presence through phase two of its ‘go broad, go deep’ strategy.
Coinbase’s international expansion strategy purportedly involves obtaining licenses and registrations, customising its product offerings to meet the needs of each local market, forming partnerships with local businesses, and enhancing its operations in what it defines as ‘go deep’ markets that have established clear regulations.
Officials from the cryptocurrency exchange stated that, via this registration, the company seeks to support and expand their retail consumers, institutional clients, and developer partners in Spain.
They further added that, as many countries worldwide are taking steps to provide clarity and guidance for the crypto industry, Coinbase has obtained VASP registrations in Italy, Ireland, and the Netherlands, received in-principle approval and launched in Singapore, launched in Brazil, and most recently, launched in Canada.
