Spain Sees a 56% Rise in Crypto Firms in 2023, Total Now at 85

In 2023, Spain’s cryptocurrency sector witnessed significant growth, as evidenced by the 56% increase in the number of crypto companies registered. The official registry maintained by Spain’s central bank now includes 30 new businesses authorized to operate as virtual asset service providers. This development marks a trend from 2022 when the registry was first established and 53 firms were added.

The influx of new registrations indicates a robust interest in Spain’s crypto market, both from domestic and international players. Notable international platforms such as Revolut, Bitpanda, Crypto.com, and Vivid were among the earlier entrants. This growth in registrations underscores Spain’s evolving position as a significant hub for digital asset activities in Europe.

Strengthening Regulatory Framework in Spain

Spain’s regulatory authorities have demonstrated a proactive approach towards cryptocurrency regulation. This year, the Spanish Ministry of Economy and Digital Transformation preempted the EU deadline by implementing the Markets in Crypto-Assets Regulation six months early. This move signifies Spain’s commitment to providing a regulated and safe environment for crypto enterprises and investors.

In another significant development, the National Securities Market Commission (NSMC) undertook legal action against a technology provider for non-compliance with crypto promotion regulations. This action highlights the increasing scrutiny and enforcement of regulations within Spain’s crypto space. Furthermore, the introduction of Form 721 by the Spanish Tax Administration Agency, a tax disclosure form for digital assets held outside of Spain, points towards an enhanced focus on transparency and tax compliance in the sector.

Crypto Tax Compliance in Focus

The Spanish government has taken stringent measures to ensure tax compliance in the crypto sector. In a notable move, the government issued warning notices to 328,000 individuals for non-payment of cryptocurrency taxes for the fiscal year 2022. This number shows a 40% increase compared to the previous year, reflecting the growing importance of cryptocurrency in Spain’s economy and the government’s intent to enforce tax regulations rigorously.

Despite the increasing regulatory oversight, the Spanish crypto market continues to attract significant interest, with domestic enterprises holding 61 out of 85 licenses. The entry of major players like Coinbase and Kraken, who recently obtained regulatory registrations in Spain, further validates the market’s potential and the effectiveness of the regulatory framework.

Read Also: Paxos Gets NY Financial Regulator Nod for #Solana Launch