Spain

**Report on the Current Status of Retail Trading of Cryptocurrencies in Spain**

**Date:** 2025-06-26

**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).

**Identified Status:** Allowed-Regulated

**Detailed Narrative Explanation:**

Individual citizens and residents in Spain are legally permitted to buy, sell, and hold cryptocurrencies. This activity is subject to a developing and increasingly comprehensive regulatory framework, primarily driven by European Union directives and regulations, alongside national implementing laws. Spain has been proactive in transposing EU AML/CFT (Anti-Money Laundering/Countering the Financing of Terrorism) directives and is in the process of fully implementing the EU's Markets in Crypto-Assets (MiCA) Regulation.

**Historical Context and Regulatory Evolution:**

Initially, Spain's approach to cryptocurrencies was cautious, with no specific crypto-focused legislation. Cryptocurrencies were not considered legal tender. However, the Spanish government recognized the need for investor protection and to combat financial crime associated with crypto-assets.

A significant step was taken with Royal Decree-Law 7/2021, which transposed the EU's 5th Anti-Money Laundering Directive (AMLD5). This law brought providers of virtual currency exchange services for fiat currency and custodian wallet providers under the scope of AML/CFT regulations. These entities are required to register with the Bank of Spain and implement KYC/AML procedures, including customer due diligence and reporting of suspicious transactions to the SEPBLAC (Executive Service of the Commission for the Prevention of Money Laundering and Monetary Offences).

The advertising of crypto-assets as investment objects also came under scrutiny. The Spanish National Securities Market Commission (CNMV) was granted powers to oversee this advertising. CNMV Circular 1/2022, of January 10, established rules for crypto-asset advertising, requiring it to be clear, balanced, impartial, not misleading, and to include warnings about risks. However, with the advent of MiCA, which provides EU-wide rules on advertising, CNMV Circular 1/2022 was repealed by Circular 1/2024, effective December 28, 2024, to avoid regulatory duplication, though the CNMV retains oversight powers.

**Current Regulatory Landscape - The MiCA Era:**

The most significant development is the EU's Markets in Crypto-Assets (MiCA) Regulation (Regulation (EU) 2023/1114), which entered into force in June 2023 and is progressively becoming applicable. MiCA aims to create a harmonized regulatory framework for crypto-assets across the EU, covering issuers of crypto-assets and crypto-asset service providers (CASPs). It introduces requirements for transparency, disclosure, authorization, and supervision of CASPs, and consumer protection.

Spain has opted to accelerate the implementation of MiCA. While some MiCA rules (e.g., for asset-referenced tokens (ARTs) and e-money tokens (EMTs)) became applicable from June 30, 2024, the full framework for CASPs will be in place by December 30, 2025, in Spain, which is earlier than the general EU deadline.

Under MiCA, the CNMV is the primary competent authority for the authorization and supervision of most CASPs and crypto-asset offerings (excluding ARTs and EMTs, which fall under the Bank of Spain's remit). CASPs currently registered with the Bank of Spain under AMLD5 rules can continue to operate during a transitional period until December 30, 2025, by which time they must obtain authorization under MiCA from the CNMV. New entities wishing to provide crypto-asset services must now seek authorization directly from the CNMV under MiCA.

**Key Regulatory Aspects for Retail Investors:**

*   **Legality:** Buying, selling, and holding cryptocurrencies by retail investors is permitted.
*   **KYC/AML Requirements:** Crypto-asset service providers (exchanges, custodian wallet providers) are subject to stringent KYC/AML obligations. This includes identifying customers, verifying their identity, monitoring transactions, and reporting suspicious activities. These measures aim to prevent money laundering and terrorist financing.
*   **Investor Protection:** MiCA introduces significant investor protection measures, including requirements for CASPs to provide clear and comprehensive information to clients, manage conflicts of interest, and safeguard client assets. The CNMV has also emphasized the need for financial entities to assess the suitability of crypto investments for retail clients.
*   **Warnings:** The CNMV and the Bank of Spain have issued multiple warnings about the risks associated with investing in cryptocurrencies, highlighting their volatility, complexity, and the potential for loss of invested capital. They stress that crypto-assets may not be suitable for all investors, particularly retail investors with limited risk appetite or understanding.
*   **Taxation:** Gains from cryptocurrency transactions are subject to taxation in Spain. Specific tax reporting obligations for virtual currencies have been introduced, such as Forms 172, 173, and 721 (which replaced Form 720 for virtual currencies held abroad).

**In summary,** retail trading of cryptocurrencies in Spain is allowed but is now firmly within a regulated environment. The implementation of MiCA is central to this, establishing a comprehensive framework for CASPs and investor protection. KYC/AML requirements are a cornerstone of the regulatory approach, and authorities continue to warn citizens about the inherent risks of crypto investments.

**Specific, Relevant Text Excerpts and URL Links:**

*   **MiCA Implementation and Competent Authorities:**
    *   "El Reglamento sobre Mercados de Criptoactivos (MiCA) entró en vigor en junio de 2023, y en aplicación, en su totalidad, el 30 de diciembre de 2024, estableciendo normas de aplicación directa en todos los países de la Unión Europea para la emisión de determinados criptoactivos y la actividad de los proveedores de servicios." (Note: While this source states full application by Dec 30, 2024, other sources and the CNMV itself clarify the transitional period for CASPs in Spain extends to Dec 30, 2025).
    *   "La CNMV es la autoridad competente para la supervisión del cumplimiento de MiCA. Sin perjuicio de ello, el Banco de España ejercerá las funciones de supervisión, inspección y sanción en relación con las obligaciones que se prevén en MiCAR en lo que se refiere a los emisores de fichas referenciadas a activos (ARTs) y fichas de dinero electrónico (EMTs)."
    *   "España decidió aplicar este periodo transitorio, reduciéndolo a 12 meses (esta decisión fue comunicada formalmente a ESMA). Por lo tanto, el periodo transitorio en España finalizará el 30 de diciembre de 2025."
    *   **Source:** Comisión Nacional del Mercado de Valores (CNMV) - MiCA: Nueva regulación de criptoactivos.
        *   **URL:** [https://www.cnmv.es/portal/legislacion/MiCA.aspx](https://www.cnmv.es/portal/legislacion/MiCA.aspx)

*   **AML/KYC Requirements:**
    *   "In relation to anti-money laundering (“AML”) matters, on April 28, 2021, the Spanish National Gazette published Royal Decree 7/2021, of April 27... This Royal Decree modified Law 10/2010, of April 28, for the Prevention of Money Laundering and Financing of Terrorism... In order to comply with this requirement, the following must be filed to the SCB [Bank of Spain]: (i) an AML Procedure Policy (which must contain due diligence measures, KYC policies, identification of clients, communications to SEPBLAC, internal control measures, etc.); (ii) a Risk Analysis Assessment; and (iii) the appointment of a company representative...before SEPBLAC."
    *   **Source:** Global Legal Insights - Blockchain & Cryptocurrency Laws & Regulations 2025 | Spain.
        *   **URL:** [https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/spain](https://www.globallegalinsights.com/practice-areas/blockchain-laws-and-regulations/spain)
    *   "Las entidades crypto o de "dinero electrónico" son sujetos obligados de las regulaciones de AML nacionales e internacionales... Primero, resumamos qué dicen la Ley 10/2010 (PBC-FT) y la Quinta Directiva de la UE, que regulan a las entidades crypto en España. Sujetos obligados: Incluye a las plataformas de intercambio de criptomonedas, aplicaciones de cambio entre criptomonedas y monedas fiduciarias, y proveedores de billeteras digitales. Obligaciones: Identificación de clientes, conservación de documentos, comunicación al SEPBLAC de operaciones sospechosas y medidas de diligencia debida reforzadas en base al nivel de riesgo del cliente."
    *   **Source:** Parallel Blog - Softwares de AML y KYC para el sector crypto.
        *   **URL:** [https://www.parallelmarkets.com/es/blog/software-aml-kyc-crypto](https://www.parallelmarkets.com/es/blog/software-aml-kyc-crypto)

*   **Investor Warnings and Advertising:**
    *   "La Comisión Nacional del Mercado de Valores (CNMV) y el Banco de España publicaron un comunicado conjunto el 9 de febrero de 2021...en el que advertían sobre los riesgos que este nuevo tipo de activos suponen para los partícipes en el sistema financiero y, en particular, para los pequeños inversores." (This refers to a past warning, similar ones have been reiterated).
    *   "La inversión en criptoactivos no está regulada, puede no ser adecuada para inversores minoristas y perderse la totalidad del importe invertido." (This was the mandatory warning under the now-repealed Circular 1/2022, but reflects the general sentiment of regulatory warnings).
    *   **Source:** Boletín Oficial del Estado (BOE) - Circular 1/2022 de la CNMV.
        *   **URL:** [https://www.boe.es/buscar/doc.php?id=BOE-A-2022-709](https://www.boe.es/buscar/doc.php?id=BOE-A-2022-709)
    *   "On 28 December 2024, the CNMV officially repealed Circular 1/2022 with the publication of Circular 1/2024. This new circular states that, since the MiCA Regulation establishes common rules across the European Union, maintaining additional national regulation for crypto-asset advertising is unnecessary."
    *   **Source:** TrustCloud - CNMV adapts MiCA: changes crypto advertising regulation Spain.
        *   **URL:** [https://www.trustcloud.tech/blog/cnmv-adapts-mica-changes-crypto-advertising-regulation-spain/](https://www.trustcloud.tech/blog/cnmv-adapts-mica-changes-crypto-advertising-regulation-spain/)

*   **General Permissibility and Regulatory Direction:**
    *   "Spain has established itself as a crypto-friendly nation, allowing trading, mining, and usage of cryptocurrencies, although they do not hold legal tender status. The country is actively implementing the European Union's Markets in Crypto-Assets (MiCA) regulation, aiming for full enforcement by December 2025."
    *   **Source:** AInvest - Spain Accelerates MiCA Implementation by 6 Months.
        *   **URL:** [https://www.ainvest.com/news/spain-accelerates-mica-implementation-by-6-months-20250416ac31987f872d820c/](https://www.ainvest.com/news/spain-accelerates-mica-implementation-by-6-months-20250416ac31987f872d820c/)