Bank Of Spain Issues VASP License To Binance

The biggest crypto exchange in the world due to its trading volumes, Binance has managed to secure a license from the Bank of Spain. This would permit the crypto exchange to provide its services in the country in accordance with the local laws. This certification dictates that Binance would have to comply with the anti-money laundering and know-your-customer (KYC) procedures that are mandatory in Spain. This certification has been granted to about 17 companies in the country.

Binance to operate as a VASP

The Bank of Spain recently began issuing licenses to virtual asset service providers (VASPs) in the country and Binance has now joined the list of companies that have been granted this license. This certification is only granted to companies that are found to be in compliance with the country’s AML/KYC procedures that have been established by the Bank of Spain.

This is undoubtedly a major milestone that Binance has achieved. It was back in January that the exchange had applied for this certification. Now, the crypto exchange is permitted to offer citizens its crypto custody and trading services, as the Spanish authorities have given it the green light to do so.

CEO speaks up

Changpeng Zhao, or CZ as he is known, the chief executive and founder of Binance, said that effective regulation is a must for ensuring cryptocurrencies are adopted on a large scale. He said that the registration of Moon Tech in Spain is a validation of the company’s commitment and hard work to offer a platform that gives priority to user protection more than anything else.

With the addition of Binance, the Bank of Spain has given its approval to 17 custody providers and exchanges. The first certification had been issued back in February and it had been granted to Bit2me.

Future plans

Binance Spain’s director, Quim Giralt said that the company is planning on expanding its operations in Spain after getting certification. He said that they would expand their operations and team to ensure their services are accessible to everyone.

He also disclosed that in the next few years, the crypto exchange would hire local talent to cater to the Spanish-speaking people and help them grow the local crypto market. However, it is important to note that there have been challenges that Binance has had to overcome where Spanish regulators are concerned.

The CNMV, the securities regulator in the country, had reprimanded the exchange and its crypto derivatives products, which also included futures contracts. Therefore, the company announced in May that it was no longer offering these products to its Spanish clients.

It is also important to note that the Bank of Spain has not had a favorable stance where cryptocurrencies are concerned and they have been critical of the industry and its value proposition. The Bank of Spain’s governor, Pablo Hernandez de Cos, has also repeatedly issued warnings about the crypto market and the risks associated with them. He has also cautioned against including cryptocurrencies in the traditional financial system.

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