Bitcoin Once Again Forces Banks To Think about Integrating Crypto Assets

Financial institutions in Spain are facing hardships in ignoring cryptocurrencies because Bitcoin has been forcing them to reconsider their decisions whether or not to integrate cryptocurrencies. Under the Spanish laws, Bank of Spain, has been given the task to record and maintain the list of entities/companies involved in rendering crypto custodial or trade services. Though the banks in Spain have become interested towards offering virtual assets to their customers directly, yet they are confused whether they need to obtain any prior permission from the regulating bank or not.

Indeed Bitcoin is the driving force behind the global crypto economy. If Bitcoin storms then subsequently all virtual currencies and assets of the industry attract attention. Now a days, Bitcoin is once again making headlines after headlines. Price of Bitcoin is growing with sheer pace and its owners are continuously calculating their gains. Even those who were against Bitcoin are now considering to take Bitcoin very seriously.

In the past two years, there were many financial institutions in different countries which grew attraction towards cryptocurrencies. They wanted to offer cryptocurrencies to their customers but majority of them couldn’t because of the restrictions and the lack of understanding. These included those banks as well which thought that their adoption of crypto would attract strict action taken by their regulators. But already, majority of the banks worldwide have lost a great deal of opportunity of turning thousands of dollars into millions.

Once again there has been a huge interested developed amongst Spanish banks with regard to crypto. They are looking forward to launch crypto custodial and crypto trading services for the interested customers. Banks want that if they have crypto-interested customers then they should be the first and the last platform to meet their aspirations. For this purpose, banks in Spain are currently looking at what arrangements they are required to make. They want to make sure that prior to the implementation of expected crypto regulation, they can ensure compliance beforehand.

A large number of Spanish banks are willing to register themselves as “crypto custodial” and “crypto service” providers. Bank of Spain, which is the central bank of Spain, had earlier issued guidelines. In these guidelines, Bank of Spain had indicated a deadline of 29th October, 2021. Within this deadline, crypto service providers as well as custodial service providers were to register with the Bank of Spain.

However, there is a problem which is being faced by the financial institutions. The banks are confused whether they too are required to seek registration or not. In fact, registration is sought to make sure that service providers are complying with the Anti-Money Laundering policy or not. In the case of banks, they are already implementing the policy in letter and spirit and therefore seeking registration makes no sense. But they are in dire need of some expert advice or a clarification from the Bank of Spain would be sufficient.