Spain: Adopted Royal Decree-Law 7/2021 containing registration requirement for virtual currency exchanges and electronic wallet providers

On 27 April 2021, the Royal Decree-Law 7/2021 is adopted by the Spanish Government through the urgency procedure. The law implements the Fifth EU Money Laundering Prevention Directive (2018/843) and amends the Spanish money laundering law to include providers of virtual currency exchange services and electronic wallet custody services, which are thus subject to a registration requirement. The law adopts the definitions of the EU Directive. Virtual currency exchange services comprise the purchase and sale of virtual currencies while electronic wallet custody services consist of the safeguarding of private cryptographic keys for clients to hold, store and transfer virtual currencies. Natural persons and legal entities providing such servies must register in a registry by the Bank of Spain and risk fines of up to EUR 10 million for non-compliance. The law will enter into force on 1 January 2022.