Bitpanda is Now Controlled in Spain – What to Expect
Bitpanda is expanding in Spain; After registering as a virtual currency exchange and digital asset custody service in the country. The company officially entered the register of the Bank of Spain for crypto firms on June 16th. The Bank of Spain opened the registry for crypto service providers in October last year. Bit2Me, the Spanish crypto exchange, became the first company to add to the registry in February this year.
The EU plans to set up a license; Allowing crypto firms to regulate in a single EU country to act by the crypto-asset markets bill in another country. The MiCA framework is in the final stages of the EU legislative process.
However, Bipanda, valued at approximately $4.1 billion by August 2021, Is not waiting for the launch of an EU license and successfully registered in the Virtual Asset Service Provider registers, both in Italy and Sweden; at the beginning of this year and registered with the French Securities Regulatory AMF in 2020.
It is worth noting that the firm’s regulatory efforts are easy to notice. In February, Bitpanda announced its acquisition of Trustology. On the announcement day, the UK Financial Conduct Authority warned that it was closely monitoring the procurement. When the announcement, Trustology registered with the FCA’s Money Laundering Rules Register. However, according to the FCA, this was not enough. The FCA said in a February statement that MLRs did not contain any provision; this allowed the FCA to assess the suitability and validity of beneficial owners Or changes in control before the transaction is completed.
Bitpanda and Crypto Fears
Bitpanda later said the FCA statement was expected and that he had a good relationship with the regulator. In a statement Monday, the firm said it remains committed to achieving regulatory status in countries, especially in the light of recent turbulence in crypto markets. Crypto markets as of Monday recorded a liquidation of at least $7 billion. Over the weekend, the price of Bitcoin fell below $20,000 for the first time since December 2020.
Recent explosions in cryptocurrency markets indicate a long-term warning about the dangers of decentralized digital money, the Bank for International Settlements said. The BIS issued a warning in its forthcoming annual report, which also called for more efforts to create attractive digital currencies for the central bank. The general manager pointed to the recent collapse of TerraUSD and Luna Stabilcoins and the 70% drop in Bitcoin; For the crypto market as indicators of a structural problem.
Without a government-backed body that can use its tax-funded reserves, any form of money will ultimately lack credibility. According to him, all these weaknesses, which were mentioned earlier, are pretty materialized. Analysts estimate that the total value of the crypto market has fallen by more than $2 trillion since November. According to his predictions, the losses will be significant, and the opaque nature of the crypto world will lead to uncertainty.
Conclusion
BIS is a long-term skeptic of cryptocurrencies. The report reflects his vision for the future of the monetary system. Central banks use Bitcoin and similar technical advantages in this system to create digital versions of their currencies. About 90% of monetary authorities now study CBDCs. Many hope this will equip them for the online world and protect cryptocurrencies. However, the BIS wants to coordinate critical issues such as ensuring they work across borders. The immediate challenges are primarily technological. However, there is also a geopolitical issue as relations between the West and the countries decline.
