After applying for VASP registration in January, Moon Tech Spain received approval from the Bank of Spain in July. In a statement marking the achievement, Binance’s founder and CEO, Changpeng Zhao (CZ), emphasized that Moon Tech’s registration in Spain reflects the Binance team’s dedication to ensuring user protection above all else. He stressed the importance of effective regulation for the broad adoption of cryptocurrencies. The company has made significant investments in compliance, implementing AMLD 5 and 6-compliant tools and policies to ensure the exchange remains secure and trusted. Quim Giralt, Binance’s Director in Spain, highlighted the importance of this expansion, noting that it will enhance service accessibility and continue to foster local growth by expanding the team and crypto ecosystem.
Binance’s Expansion Efforts in Europe
Binance has recently focused on expanding its presence in Europe. The company has registered local entities in France and Italy, further demonstrating its commitment to adhering to Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations.
In April, Binance also secured office space in the renowned Station F startup incubator in Paris as part of its €100 million Web3 and crypto investment initiative called Objective Moon. This initiative is set to create a Binance Research and Development hub in France, designed to attract talent. The project also includes the development of online educational materials and the creation of the Objective Moon Accelerator, a professional network linking companies within the industry. Earlier this year, the company secured regulatory approvals to operate in Dubai, Abu Dhabi, and Bahrain.
CryptoChipy received news on Friday regarding Binance’s expansion into Spain, which represents a significant breakthrough in the European cryptocurrency landscape. A Binance spokesperson discussed with CryptoChipy the potential for the European Union to emerge as a leader in the crypto and blockchain sectors. With MiCA’s consistent regulatory framework on the horizon, Europe is positioned to become a global hub for the industry.
Binance’s Focus on Aligning with AML and CTF Regulations in Europe
Binance is making significant strides in Europe as the European Union works to streamline regulations for the cryptocurrency industry. Last year, the exchange received multiple warnings from regulators in key markets such as the United Kingdom, Italy, and Spain for offering certain services without proper authorization. These warnings prompted Binance to further invest in its compliance and regulatory teams.
Recently, the European Union adopted new rules that require cryptocurrency companies to obtain a license and implement customer safeguards before issuing and selling digital currencies within the bloc. The new regulations are intended to address the volatility seen in the industry. Currently, the rules do not require cross-border approvals for crypto services within the EU; however, this will change with the new rules set to be implemented in 2023. Up until now, cryptocurrencies have largely operated without global regulation, with national regulators in the EU only requiring firms to demonstrate controls against money laundering.
Binance’s European momentum comes at a favorable time, as Italy’s government has committed $46 million to blockchain and cryptocurrency research. The country’s Ministry of Economic Development confirmed that several blockchain projects will benefit from these subsidies, marking a significant milestone for the industry as cryptocurrency adoption grows. Binance’s expansion into Spain opens new opportunities as it recruits local talent to serve the Spanish-speaking market.
The Bank of Spain supervises Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) regulations for Virtual Asset Providers (VASPs) that offer fiat-to-digital asset exchange services. The Bank also oversees custody services for electronic wallets within the country, ensuring that local entities comply with honorability and commercial requirements. However, the Bank of Spain does not monitor the financial and operational risks of the company.
Binance is not the only crypto exchange expanding its operations in Europe. CryptoChipy notes that Coinbase Pro and FTX are also extending their reach. In March, the Cyprus Securities and Exchange Commission approved FTX Europe’s launch as a second affiliate of the FTX exchange. Additionally, CryptoChipy reported that Coinbase is planning to hire a regional manager to oversee its European expansion.
