Spain

**Report: Retail Cryptocurrency Trading Status in Spain**

**Date:** April 12, 2025

**Analyst:** Specialized Financial Regulatory Analyst AI

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**Topic: Retail_Trading_Status**

**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

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**1. Current Status:** **Allowed-Regulated**

**2. Narrative Explanation:**

Retail trading of cryptocurrencies (buying, selling, holding) by individual citizens and residents is permitted in Spain. However, this activity operates within an increasingly defined regulatory framework, primarily focused on Anti-Money Laundering/Counter-Financing of Terrorism (AML/CFT), consumer protection through advertising controls, and the licensing of service providers under the EU's Markets in Crypto-Assets (MiCA) Regulation.

*   **Historical Context & AML/CFT:** Spain initially lacked specific crypto-asset regulation beyond general laws. A significant step was the transposition of the EU's 5th Anti-Money Laundering Directive (AMLD5) via Royal Decree-Law 7/2021 [2, 11]. This amended Spain's primary AML law (Law 10/2010) to explicitly include providers of services for exchanging virtual currency for fiat currency and custodian wallet providers as "obliged entities" [1, 2]. These entities were required to register with a special registry maintained by the Bank of Spain (Banco de España) and implement robust AML/CFT procedures, including Know Your Customer (KYC) checks [1, 4, 11]. This registration requirement applied to entities offering services *in* Spain, regardless of their physical location [1, 5]. While cryptocurrencies themselves are not considered legal tender in Spain [1], the focus was on regulating the service providers facilitating transactions.
*   **Advertising Regulation:** Recognizing the risks associated with crypto investments, particularly for retail investors, Spain granted the National Securities Market Commission (Comisión Nacional del Mercado de Valores - CNMV) powers to oversee the advertising of crypto-assets presented as investments (Article 240 bis of the Securities Market Act, introduced by Royal Decree-Law 5/2021) [6]. CNMV Circular 1/2022, effective from February 2022, established rules for such advertising, requiring clarity, balance, non-misleading information, inclusion of risk warnings, and prior notification to the CNMV for mass campaigns (targeting over 100,000 people) [2, 6, 10]. However, with the advent of MiCA's harmonized rules, CNMV Circular 1/2022 was repealed by Circular 1/2024, effective December 28, 2024 [7]. While the specific Spanish pre-notification and disclaimer rules are gone, advertising must now comply with MiCA's marketing communication requirements, and the CNMV retains supervisory powers over these EU-level rules within Spain [7].
*   **MiCA Implementation:** The EU's MiCA regulation provides a comprehensive framework for crypto-asset issuers and Crypto-Asset Service Providers (CASPs). Spain has designated the CNMV as the primary competent authority for supervising most CASPs under MiCA, while the Bank of Spain oversees issuers of Asset-Referenced Tokens (ARTs) and E-Money Tokens (EMTs) [1, 4, 5, 8]. MiCA's provisions relating to CASP authorization became applicable on December 30, 2024 [9]. Spain opted to shorten the MiCA transitional period (Article 143.3) for existing providers. Entities that were legally providing services (i.e., registered with the Bank of Spain for AML purposes) before December 30, 2024, can continue operating but must obtain MiCA authorization from the CNMV by **December 30, 2025** [1, 9, 13, 14]. The Bank of Spain registry ceased new registrations on December 30, 2024, but remains active for verification purposes during the transition [9, 14]. New CASPs wishing to operate in Spain must obtain CNMV authorization *before* commencing activities [9].
*   **Taxation:** Spain has also implemented specific tax reporting requirements concerning crypto-assets. Law 11/2021 introduced obligations to report balances and transactions involving virtual currencies, including specific forms like Form 172 (balances held by Spanish residents) and Form 721 (virtual currencies held abroad above certain thresholds) [1, 2].

In summary, individuals in Spain can freely trade crypto-assets, but the environment is regulated. Service providers must comply with stringent AML/KYC rules, are subject to licensing and supervision under MiCA (overseen primarily by the CNMV), and must adhere to EU-level advertising standards. Tax reporting obligations also apply.

**3. Supporting Excerpts:**

*   **On AML/VASP Registration (Pre-MiCA):** "Spanish law, through Royal Decree 7/2021 [...] has regulated providers of crypto-to-fiat currency (and vice versa) exchange and custodian services from the standpoint of AML legislation [...] Regardless of their nationality, if services relating to “Virtual Currency Exchange for Fiat Currency” or “Services for the Custody of Electronic Wallets” are offered or provided in Spanish territory, these individuals or entities will have to be registered with the Registry of the Spanish Central Bank (“SCB”) created for these purposes." (Source: Global Legal Insights, 2024-09-10) [1]
*   **On AML/VASP Registration (Post-MiCA Transition):** "Upon the entry into force of the MiCA Regulation on 30 December 2024, such registry [Bank of Spain AML registry] shall cease to make new registrations, although it will continue to exist for verification purposes of registered entities." (Source: CNMV Communication, 2024-12-19) [9]
*   **On Advertising Regulation (Repeal of National Rules):** "In parallel with such change [MiCAR entering force], the Spanish financial authority (CNMV) published last 27 December 2024 a circular (Circular 1/2024) that repeals Circular 1/2022, which concerns Spanish advertising rules of crypto-assets. [...] As of 28 December 2024, the abovementioned requirements and conditions are completely repealed. Entities will no longer have to comply with those local rules, and thus, should review their relevant disclaimers, keeping in mind the marketing rules under MICAR [...] It should be noted that the CNMV will still keep their powers to supervise the compliance of crypto-asset providers with MICAR advertising rules." (Source: Blockchain Law Hub, 2025-01-22) [7]
*   **On MiCA Implementation & Timeline:** "Spain decided to apply this transitional period [MiCA Article 143.3], reducing it to 12 months [...] Therefore, the transitional period in Spain shall conclude on 30 December 2025." (Source: CNMV Communication, 2024-12-19) [9]
*   **On MiCA Competent Authorities:** "Spain designated the CNMV and