Spain includes payment startup BVNK in its crypto ledger

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The Bank of Spain has registered the local unit of BVNK, the crypto-powered banking and payment platform for businesses, as a virtual currency platform.

The new license comes as Madrid seeks to control crypto activities by introducing a series of new regulations, including stricter KYC rules for digital currency transactions. Spanish authorities want to prevent anonymity in cryptocurrency transactions, thus banning anonymous crypto accounts.

London-based BVNK provides financial services to businesses using cryptocurrency because it says traditional payments run on legacy infrastructure suffer from excessive fees and slow processing times. Trying to leverage the attributes of cryptocurrencies, the startup is bridging the gap by offering banking and money management services to businesses struggling to balance operations between traditional and digital assets.

BVNK, which raised $40 in May to be a sort of bank for crypto companies, has built an infrastructure that processes more than $2 billion in annualized payment volume. It also more than doubled monthly payment volumes in less than six months. Customers can make and collect payments through their BVNK account in fiat and cryptocurrency, as well as the ability to purchase new digital assets.

“Registration in Spain will be the first of many similar milestones and demonstrates our commitment to becoming a globally recognized company that complies with the highest international regulatory standards,” said Maximilian von Both, Chief Legal, Risk and Compliance Officer. , BVNK.

Spain, despite not considering cryptocurrencies as legal tender, has kept an open approach when it comes to the existence of digital asset platforms in the country.

Spain recently approved measures to amend its money laundering legislation to comply with the EU’s Fifth Money Laundering Directive (AMLD 5). Spain’s parliament voted on updated regulations in 2020, which allow the central bank to control the country’s crypto providers.

Spain’s financial markets regulator, often abbreviated as CNMV, regularly issues warnings against unlicensed crypto platforms and brokers targeting investors in the country.

Current laws require crypto exchanges, wallet providers, and crypto custodial providers operating in Spain to register with a financial regulator and prove they meet AML requirements if they wish to continue operations. .

The penalties that crypto firms will have to pay if they evade this ledger are between €150,000 and €10,000,000, and this could also include penalties to the guidelines of these platforms.

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Elaine R. Knight