Your “registered” exchange is NOT authorized

Your “registered” exchange is NOT authorized

Regulation has changed a lot in this recent time, and the exchanges that are as of today registered with the Bank of Spain (under the old AML framework) must also have a specific license under MiCA, this implies being authorized before the CNMV.

In other words, it is no longer enough for the Exchange to simply be registered with the Bank of Spain, and this is not a minor thing, given that MiCA is fully applicable for CASPs since December 30, 2024.

And although Spain set a transitional period until December 31, 2025 (with the possibility of extension until month 7 of 2026), very soon only providers authorized under MiCA will be able to operate.

What did it mean to be “registered” (Bank of Spain, AML framework)?

Being enrolled in the Bank of Spain does not imply approval, nor the verification of the activity. The Register does not grant any kind of license. This served at the time to identify the provider as an obliged subject before AML and subject it to certain obligations (AML/CFT). But after the entry of MiCA, the Bank of Spain indicates that the historical register remains only for informational purposes and for modification or cancellation procedures, while the MiCA transitional regime lasts.

What does it mean to be “authorized” (MiCA, CASP)?

On the other hand, the MiCA license grants the status of Crypto-Asset Service Provider (CASP) granted by the CNMV for specific services such as custody, on/off-ramp solutions, RTOs, operations within the platform, etc.

And why the CNMV? Because it is the competent authority in Spain under the criteria dictated by ESMA.

Unlike mere registration, the license implies supervision of conduct, scope of services and passport to operate in the European Union.

Do not confuse being listed in the Bank of Spain’s register with being authorized by MiCA.

Another important thing to highlight is that Circular 1/2024 repealed the old Circular 1/2022 on crypto advertising, given that MiCA already contains specific rules on advertising and commercial practices.

How to check if your Exchange is safe?

In the CNMV, through this link, verify that the company you work with appears as authorized: https://www.cnmv.es/Portal/Consultas/Proveedores-Servicios-Criptoactivos

And what happens if we operate with an Exchange that is not registered?Well, the Exchange on the one hand is exposed to serious sanctions, among others, to appearing within the list of “chiringuitos”. All this brings direct consequences on the user, who from one day to the next may see their ability to operate impeded given that the operating company has had to suspend its operations.

Be careful with those platforms that say things like “100% regulated in the EU” and do not have a public file, or “Registered = Regulated”.

Until next time!