Cryptocurrencies have gained importance in the last two years as an investment asset and way of purchasing goods and services, even in the property market. However, the Spanish Government has not taken any action until now regarding cryptocurrency market regulation. A specific law regarding this matter must still be drawn. European Union Directives have been transposed which are currently in force in Spain.
First of all, the Royal Decree-Law 7/2021, 27th April, on European Union transposition with regards to jurisdiction, anti money laundering, credit institutions, telecommunications, tax measures, prevention and remedying of environmental damage, posting of workers in the framework of the provision of transnational services, and consumer protection, establishes definitions for virtual currency, virtual currency providers, and currency exchanges:
‘Virtual currency means the digital representation of value that is neither issued nor guaranteed by a central bank or public authority, is not necessarily associated with a legally established currency, and does not have the legal status of currency, but is accepted as a currency exchange and can be transferred, stored, or traded electronically.’
As Gerard Aguilar Navarro, lawyer and Tax Manager at Tecnotramit explained: ‘This law legalises the cryptocurrency market, but subjects people who provide services by exchanging virtual currency for legal tender to the preventive obligations of regulations on the prevention of money laundering; and incorporates as obliged parties the providers of electronic wallet custody services, understood as those natural or legal persons who provide private cryptographic key safekeeping services on behalf of their clients, for the holding, storage and transfer of virtual currencies in a similar way to the custody of traditional funds or financial assets.’
Secondly, Law 11/2021, 9th July, with regards to measures for the prevention and fight against fraud, transposition of (EU) 2016/1164 Directive, Council of 12th July 2016, establishes rules to standardise cryptocurrency possession, operations with virtual currencies, and virtual currencies overseas.
A great deal must still be done legislation wise regarding crytocurrencies. There are many unknowns to solve in the short- and medium-term scenarios so different market players can operate using this digital currency in a legal, controlled, and transparent manner.