Spain
Retail_Trading_Status
- Analysis ID
- #792
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- 2025-12-12 05:16
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- d1e9aeb9...
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Executive Summary
Retail cryptocurrency trading is legal and highly regulated in Spain, primarily under the EU's Markets in Crypto-Assets (MiCA) framework which is fully applicable as of December 2024. The National Securities Market Commission (CNMV) serves as the primary regulator for crypto-asset service providers (CASPs), overseeing licensing and market conduct, while the Bank of Spain retains authority over anti-money laundering (AML) compliance and e-money tokens. A strict transitional period for entities previously registered with the Bank of Spain is set to expire on December 30, 2025, after which all providers must hold a full MiCA license. Retail investors face comprehensive tax reporting obligations, specifically through 'Modelo 721' for assets held abroad.
Key Pillars
National Securities Market Commission (CNMV): Primary regulator for CASP licensing, market conduct, and advertising supervision under MiCA.
Bank of Spain (Banco de España): Manages AML/CFT compliance for legacy registered entities and supervises issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs).
MiCA Licensing Regime: Mandatory authorization for all crypto service providers; the legacy Bank of Spain VASP registry closed to new entrants on Dec 30, 2024.
Advertising Rules (Circular 1/2022): Strict requirements for clear risk warnings ('Crypto is not regulated...') and prior notification for mass campaigns targeting >100,000 people.
Tax Reporting (Modelo 721): Mandatory annual declaration for residents holding >€50,000 in crypto assets on foreign exchanges.
Landmark Laws
Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114) - Enacted: 2023-06-09
- Comprehensive EU-wide framework regulating CASPs and issuers. Fully applicable in Spain since Dec 30, 2024, with a shortened transitional period ending Dec 30, 2025.
- Source
Securities Markets and Investment Services Act (Law 6/2023) - Enacted: 2023-03-17
- Designates the CNMV as the competent authority for supervising crypto-assets and implementing MiCA in Spain.
- Source
Circular on Advertising of Crypto-Assets (CNMV Circular 1/2022) - Enacted: 2022-01-10
- Establishes rules for crypto advertising, requiring fair content, risk warnings, and 10-day prior notification for mass campaigns.
- Source
Law on Prevention of Money Laundering (Law 10/2010 (amended by RDL 7/2021)) - Enacted: 2021-04-28
- Transposed AMLD5, creating the original mandatory VASP registry at the Bank of Spain for exchange and custody providers.
- Source
Considerations
Transitional Deadline: The 'grandfathering' period for entities registered under the old Bank of Spain regime ends on Dec 30, 2025. Unlicensed operation after this date is illegal.
Taxation: Crypto is subject to Capital Gains Tax (19-28%) and Wealth Tax in some regions. 'Modelo 721' is a specific informative declaration for foreign holdings.
Advertising: Influencers and platforms must include specific disclaimers; failure to notify CNMV of mass campaigns results in fines.
Travel Rule: Fully implemented, requiring exchanges to collect and share originator/beneficiary data for transactions.
Exchange Availability: Major global exchanges operate in Spain, but must have CNMV authorization or be in the final stages of the transitional period.
Notes
The analysis assumes the current date is Dec 12, 2025. At this specific moment, Spain is weeks away from the 'hard stop' of the transitional period. Entities operating solely on the old Bank of Spain registry without a pending or approved MiCA license are at imminent risk of becoming non-compliant.
Remaining Uncertainties
- The exact number of legacy VASP-registered entities that will successfully obtain MiCA licensing before the Dec 30, 2025 deadline.
- Specifics of how the CNMV will handle enforcement actions against entities that fail to transition by the deadline but continue to operate.
Detailed Explanation
Detailed Explanation
Retail cryptocurrency trading is legal and highly regulated in Spain. The regulatory landscape is dominated by the European Union's Markets in Crypto-Assets (MiCA) framework, which became fully applicable on December 30, 2024. The National Securities Market Commission (CNMV) is designated as the primary regulator for crypto-asset service providers (CASPs), overseeing licensing and market conduct under MiCA, as per the national Securities Markets and Investment Services Act (Law 6/2023). The Bank of Spain retains authority over anti-money laundering (AML) compliance for legacy registered entities and supervises issuers of asset-referenced tokens and e-money tokens. A critical transitional period for entities previously registered with the Bank of Spain under the old AML framework (Law 10/2010) is set to expire on December 30, 2025, after which all providers must hold a full MiCA license to operate legally. The CNMV also enforces strict advertising rules under Circular 1/2022, which mandates clear risk warnings and prior notification for mass campaigns targeting over 100,000 people. For retail investors, Spain imposes comprehensive tax obligations, including Capital Gains Tax and a specific annual declaration, 'Modelo 721', for residents holding more than €50,000 in crypto assets on foreign exchanges. The 'Travel Rule' for transaction data collection is fully implemented. As of December 12, 2025, Spain is weeks away from the hard stop of the transitional period, meaning entities operating solely on the legacy Bank of Spain registry without a pending or approved MiCA license face imminent non-compliance.
Summary Points
I. Regulatory Status
* Retail cryptocurrency trading is Allowed-Regulated.
* The EU's Markets in Crypto-Assets (MiCA) framework is fully applicable as of December 30, 2024.
* A transitional period for legacy-registered entities ends on December 30, 2025.
II. Key Regulatory Bodies
* National Securities Market Commission (CNMV):
* Primary regulator for CASP licensing and market conduct under MiCA.
* Supervises crypto-asset advertising.
* Bank of Spain (Banco de España):
* Manages AML/CFT compliance for legacy registered entities.
* Supervises issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs).
* Its legacy VASP registry closed to new entrants on December 30, 2024.
III. Important Legislation
* Markets in Crypto-Assets Regulation (MiCA) (Regulation (EU) 2023/1114):
* Enacted June 9, 2023. Comprehensive EU-wide framework for CASPs and issuers.
* Securities Markets and Investment Services Act (Law 6/2023):
* Enacted March 17, 2023. Designates the CNMV as the competent authority for MiCA.
* Circular on Advertising of Crypto-Assets (CNMV Circular 1/2022):
* Enacted January 10, 2022. Establishes rules for fair content, mandatory risk warnings, and 10-day prior notification for mass campaigns.
* Law on Prevention of Money Laundering (Law 10/2010, amended by RDL 7/2021):
* Created the original mandatory VASP registry at the Bank of Spain.
IV. Compliance Requirements
* Licensing: All crypto service providers must obtain MiCA authorization from the CNMV.
* AML/CFT: Full compliance required; the Travel Rule is implemented.
* Advertising: Must include specific disclaimers (e.g., "Crypto is not regulated..."). Mass campaigns targeting >100,000 people require prior notification to CNMV.
* Taxation:
* Subject to Capital Gains Tax (19-28%).
* Mandatory annual declaration via 'Modelo 721' for residents holding >€50,000 in crypto on foreign exchanges.
* Wealth Tax may apply in some regions.
V. Notable Restrictions or Limitations
* Operating without a MiCA license after the transitional period ends (December 30, 2025) is illegal.
* Advertising without proper risk warnings or prior notification for mass campaigns can result in fines.
* Failure to file the Modelo 721 tax declaration carries penalties.
VI. Recent Developments or Notes
* As of December 12, 2025, Spain is weeks away from the 'hard stop' of the MiCA transitional period on December 30, 2025.
* Entities operating solely on the old Bank of Spain registry without a pending or approved MiCA license are at imminent risk of becoming non-compliant.
* Major global exchanges operate in Spain but must have CNMV authorization or be in the final stages of the transitional process.
Full Analysis Report
Full Analysis Report
As of December 12, 2025, Spain's cryptocurrency regulatory landscape is in the final stages of a critical transition. The country has moved from a purely AML-focused registration regime to a comprehensive prudential framework under the European Union's Markets in Crypto-Assets Regulation (MiCA). The National Securities Market Commission (CNMV) has assumed the role of primary regulator, overseeing the authorization and conduct of Crypto-Asset Service Providers (CASPs). The Bank of Spain, which previously managed the mandatory VASP registry, now focuses on the supervision of token issuers (specifically e-money tokens) and AML compliance for banking institutions.
Spain chose to accelerate the implementation of MiCA, shortening the optional 18-month transitional period to just 12 months. This transitional window is set to close on December 30, 2025. Consequently, entities that were registered with the Bank of Spain before December 30, 2024, are currently permitted to operate but must secure a full MiCA license from the CNMV by the end of this month to continue services legally. The Bank of Spain's VASP registry is effectively closed to new entrants; any new crypto business seeking to enter the Spanish market must now apply directly for MiCA authorization.
Retail trading is widely accessible and legal, provided users engage with compliant platforms. The CNMV actively enforces strict advertising standards under Circular 1/2022. This regulation mandates that all crypto promotions—including those by social media influencers—carry the warning: 'Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.' Mass advertising campaigns targeting more than 100,000 individuals require prior notification to the regulator at least 10 days in advance, a rule that has led to several disciplinary actions against non-compliant firms.
Tax enforcement regarding cryptocurrency is rigorous. Spanish tax residents are required to declare capital gains from crypto trading in their annual Personal Income Tax (IRPF) filings, with rates ranging from 19% to 28%. Additionally, the 'Modelo 721' form obliges residents to report cryptocurrency holdings abroad exceeding €50,000 in value. This reporting requirement, effective since the 2023 tax year, provides the Spanish Tax Agency (Hacienda) with granular visibility into offshore crypto wealth, and failure to file can result in significant fixed penalties.
As of December 12, 2025, Spain's cryptocurrency regulatory landscape is in the final stages of a critical transition. The country has moved from a purely AML-focused registration regime to a comprehensive prudential framework under the European Union's Markets in Crypto-Assets Regulation (MiCA). The National Securities Market Commission (CNMV) has assumed the role of primary regulator, overseeing the authorization and conduct of Crypto-Asset Service Providers (CASPs). The Bank of Spain, which previously managed the mandatory VASP registry, now focuses on the supervision of token issuers (specifically e-money tokens) and AML compliance for banking institutions. Spain chose to accelerate the implementation of MiCA, shortening the optional 18-month transitional period to just 12 months. This transitional window is set to close on December 30, 2025. Consequently, entities that were registered with the Bank of Spain before December 30, 2024, are currently permitted to operate but must secure a full MiCA license from the CNMV by the end of this month to continue services legally. The Bank of Spain's VASP registry is effectively closed to new entrants; any new crypto business seeking to enter the Spanish market must now apply directly for MiCA authorization. Retail trading is widely accessible and legal, provided users engage with compliant platforms. The CNMV actively enforces strict advertising standards under Circular 1/2022. This regulation mandates that all crypto promotions—including those by social media influencers—carry the warning: 'Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost.' Mass advertising campaigns targeting more than 100,000 individuals require prior notification to the regulator at least 10 days in advance, a rule that has led to several disciplinary actions against non-compliant firms. Tax enforcement regarding cryptocurrency is rigorous. Spanish tax residents are required to declare capital gains from crypto trading in their annual Personal Income Tax (IRPF) filings, with rates ranging from 19% to 28%. Additionally, the 'Modelo 721' form obliges residents to report cryptocurrency holdings abroad exceeding €50,000 in value. This reporting requirement, effective since the 2023 tax year, provides the Spanish Tax Agency (Hacienda) with granular visibility into offshore crypto wealth, and failure to file can result in significant fixed penalties.
Source Evidence
Primary and secondary sources cited in this analysis
"Spain decided to apply this transitional period, reducing it to 12 months... Therefore, the transitional period in Spain shall conclude on 30 December 2025."
"Investments in crypto-assets are not regulated. They may not be appropriate for retail investors and the full amount invested may be lost."
"Upon the entry into force of the MiCA Regulation on 30 December 2024, such registry shall cease to make new registrations."
"Markets in Crypto-Assets (MiCA) Act will come into force on a national level in December 2025, six months earlier than scheduled."
"You must file if, on 31 December, your crypto holdings abroad exceed €50,000 in total value."
Web Sources (13)
Sources discovered via web search grounding
Search queries used (4)
- CNMV crypto advertising circular Spain
- Spain crypto tax reporting Form 721
- Spain cryptocurrency regulation status 2025 Bank of Spain registry
- Spain MiCA implementation status December 2025
https://www.osborneclarke.com/insights/new-legislation-advances-digitalisation-and-modernisation-spains-financial-laws
https://www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/spain/
https://hexn.io/local-updates/model-721-for-cryptocurrencies-in-spain-2025-thresholds-deadlines-and-how-to-file-c5owlrt0v8weekpvau4qlaxe
https://benavidesasociados.com/en/crypto-taxes-in-spain/
https://www.ebfconsulting.com/everything-you-need-to-know-about-form-720-and-form-721-declaration-of-assets-and-cryptocurrencies-abroad/
https://alaainvest.com/how-to-legally-invest-in-cryptocurrency-in-spain-step-by-step-guide-2025-update/
https://entretramites.com/en/fiscal-tax/modelo-721-in-spain-crypto-report
https://www.hoganlovells.com/en/publications/the-eus-markets-in-crypto-assets-mica-regulation-a-status-update
https://www.lightspark.com/knowledge/is-crypto-legal-in-spain
https://www.aosphere.com/know-how/member-state-implementation-of-mica-updated-tracker/
https://vancelian.com/en/news/spain-reportedly-six-months-ahead-of-2026-mica-deadline
https://www.cnmv.es/webservices/verdocumento/ver?t={0f07b232-7c8e-4421-b376-c1183f80ddf2}
https://www.cnmv.es/portal/verDoc.axd?t=%7B1cbaf61c-57c2-4830-bd6a-071f806795e2%7D