Spain to Implement EU's 5AMLD For Crypto Firms With Recent Amendment Proposal

Lawmakers in Spain will now be ready to take a vote on proposed amendments this year. Currently, Spain is behind schedule compared to other EU nations.

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.

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Edwin Munyui
Edwin Munyui
Edwin is a FinTech enthusiast with a particular interest in blockchain technology and cryptocurrencies. He has worked as an author in the blockchain space since 2017 and enjoys creating content that both crypto veterans and newbies can understand. His simple writing style and financial market knowledge have made him a reputable fundamental and technical analyst with the ability to handle any topic around blockchain and crypto over the years.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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