Spain's lawmakers have proposed an amendment to level up the country's compliance with Europe's Fifth Anti-Money Laundering Directive (5AMLD).
This set of regulations came into action earlier this year, pushing EU member states to take charge of crypto oversight within their jurisdictions. With Spain behind the EU's schedule, its lawmakers will be ready to vote on the amendments within 2020.
The 5AMLD was implemented as a first step towards a comprehensive regulatory framework for digital assets. This first step comes after the crypto ecosystem became a new hub for illegal activity, such as terror financing and money laundering. Spain's government website has since reiterated that its newly tabled draft law is in line with the 5AMLD objectives:
“The Draft Law advances in the reinforcement of the money laundering and terrorist financing control system, incorporating the new community provisions and including additional improvements in the current regulation to increase the effectiveness of prevention mechanisms.”
Once approved, the law will require crypto firms operating in Spain to register with the country's financial watchdog. These include businesses such as crypto exchanges, custodial service providers, and digital wallet providers.
Apart from registration, entities in this industry will be required to prove compliance over their life span. Spain's financial regulator will be able to monitor their activity through due diligence provisions.
Crypto Regulation on the Rise?
Spain's action towards crypto-assets comes at a time when regulators across the globe are looking into crypto oversight. While it has been an uphill task to keep with these innovations, countries such as Japan and Singapore are quite ahead in implementing crypto regulations.
This first-mover advantage has placed Asia on the map as a leader in the digital asset ecosystem. China, which, previously banned crypto activity, has piloted its own CBDC, could this be another ‘regulatory' perspective? It depends on which side of the table one sits on when it comes to decentralization.