The Bank of Spain has authorized the cryptocurrency exchange Binance to function in Spain as a Virtual Asset Service Provider (VASP) by issuing the license. With the Spanish government's approval, the business is now able to provide its bitcoin trading and custody services throughout the nation.

According to the largest cryptocurrency exchange by volume in the world, Binance third approval in Europe occurred after the Bank of Spain authorized its Spanish company to register as a virtual asset services provider (VASP). This indicates that the law enforcement has determined that Binance complies with the AML/KYC procedures set by the Bank of Spain through its Spanish subsidiary Moon Tech Spain, S.L. As per the press release made by Binance, the registration will enable Binance to provide crypto asset exchange and custody services in that country based on the rules of anti-money laundering and counter-terrorist financing (AML/CTF) regulations in Spain, said  Binance a press release.

Changpeng "CZ" Zhao, the founder and CEO of Binance, commented on this accomplishment by saying that Moon Tech's registration in Spain demonstrates the teams' commitment to developing a platform that prioritizes user security. The firm has ambitions to broaden its activities and reach in Spain as a result of this development, according to statements made by Quim Giralt, director of Binance Spain.

After this registration, Giralt said in a statement, that the exchange will significantly expand its team and operations in Spain in order to make its services more broadly available. Over the following years, the exchange will hire local talent to serve the Spanish-speaking market and assist the development of the local crypto ecosystem.

License issued by other nations :

The endorsement follows government authorisation for Binance to provide cryptocurrency-related services in May from France and Italy. In Germany, it has also applied for a similar licence. Regulators and law enforcement organisations in the United States, Canada, Hong Kong, the United Kingdom, Japan, Israel, and South Africa are now investigating Binance.

Criticism received by the exchange :

Binance has had some issues with Spanish regulators. The exchange had received criticism from the country's securities regulators, the CMNV, for providing derivative products related to cryptocurrencies, including futures contracts. In May due to this the business stopped selling these products to customers in Spain. Bank of Spain has harshly criticized cryptocurrencies' value proposition. The governor of the Spanish central bank, Pablo Hernandez de Cos, has often expressed concern about the risks associated with integrating cryptocurrencies into traditional finance. Binance is being barred from Malaysia and has left Australia and Singapore.

With the addition of Binance, there are currently more than 17 accredited exchanges and custody providers. Bit2me was the first exchange that the organization authorized in February.

Indrani bose

CBW - External Analyst

INDIA