Quick Answer
Yes, cryptocurrency is legal in Spain but not legal tender.
- The euro is the only official legal tender in Spain.
- Activities are subject to AML, tax, and advertising regulations.
Legal Status of Crypto in Spain
Cryptocurrency in Spain occupies a legal but regulated space; while not considered legal tender, it is not prohibited. This status reflects Spain's conservative approach, driven by a strong focus on investor protection, preventing financial fraud, and combating money laundering, all while trying to embrace blockchain innovation under a controlled framework. A complex web of compliance requirements governs the sector, enforced by regulatory authorities like the Bank of Spain and the National Stock Market Commission (CNMV). These bodies oversee adherence to national laws and the EU's Markets in Crypto-Assets (MiCA) regulation, which dictates rules for advertising, registration, and taxation.
Current Regulations
Spain's regulatory approach is a mosaic of national and EU laws rather than a single, crypto-specific act. A key piece is the transposition of the EU’s Fifth Anti-Money-Laundering Directive, which compels virtual currency exchanges and wallet providers to register with the Bank of Spain and comply with AML rules. The legal landscape is further shaped by the Securities Markets Law (Law 6/2023), which covers DLT-based financial instruments and prepares for the EU's overarching Markets in Crypto-Assets (MiCA) regulation. Additionally, the National Stock Market Commission (CNMV) directly supervises crypto advertising to protect consumers.
Regulatory Authorities
Spain's crypto landscape is supervised by a trio of key regulatory bodies, each with distinct responsibilities.
- Bank of Spain (Banco de España): The Bank of Spain is responsible for the mandatory registration of all Virtual Asset Service Providers (VASPs), including exchanges and custodian wallet providers. It primarily ensures these entities comply with anti-money laundering requirements and will also supervise issuers of e-money and asset-referenced tokens under MiCA.
- National Stock Market Commission (CNMV): The CNMV is the main authority for overseeing compliance with the EU's Markets in Crypto-Assets (MiCA) regulation and supervises any crypto-assets that qualify as financial instruments. It also holds the power to regulate all advertising of crypto-assets presented as investments to protect consumers from misleading promotions.
- SEPBLAC: As Spain's financial intelligence unit, SEPBLAC is tasked with enforcing the country's anti-money laundering and counter-terrorist financing laws. It receives and analyzes reports on suspicious or high-value transactions from obliged entities, including crypto service providers.
Historical Context
Spain's crypto regulation evolved from a hands-off approach to a structured framework. The first major step was in April 2021, when Royal Decree-Law 7/2021 brought crypto service providers under anti-money laundering (AML) obligations, mandating registration with the Bank of Spain. Soon after, the CNMV began supervising crypto advertising to protect investors. A pivotal shift occurred in 2023 with the new Securities Markets Law, which integrated DLT-based assets and prepared for the EU’s MiCA regulation. New tax disclosure rules also took effect. These policies have formalized the sector, increasing transparency and oversight while aiming to foster innovation within a secure environment.
Compliance Requirements for Businesses in Spain
Businesses operating in Spain's crypto sector must navigate a stringent regulatory framework designed to ensure transparency and security. Key compliance obligations are enforced by the Bank of Spain, the National Stock Market Commission (CNMV), and the anti-money laundering authority, SEPBLAC. Essential rules include:
- Registration with the Bank of Spain: Any entity providing services for exchanging virtual and fiat currency or offering custody of private cryptographic keys must register with the Bank of Spain’s official registry. This applies even if the company has no physical presence in Spain but offers services there.
- AML and KYC Procedures: Firms are required to establish and file a comprehensive Anti-Money Laundering (AML) policy with the Bank of Spain. This policy must detail Know Your Customer (KYC) protocols, client identification measures, due diligence, and risk analysis assessments.
- Transaction Monitoring and Reporting: Companies must report certain transactions to SEPBLAC on a monthly basis, including those exceeding €30,000. Additionally, annual tax declarations are required for reporting balances, transactions, and virtual currencies held abroad using Forms 172, 173, and 721.
- Advertising Regulations: The CNMV mandates that all crypto-asset advertising must be clear, impartial, and not misleading. For mass campaigns targeting over 100,000 people, providers must notify the CNMV at least ten days before launch.
- Traceability of Transfers: Under Regulation (EU) 2023/1113, crypto-asset service providers must implement traceability measures, which involves collecting and verifying information on the sender and beneficiary of every transfer.
- MiCA Licensing: With the Markets in Crypto-Assets (MiCA) regulation taking effect, new entities must be licensed from December 30, 2024, while existing providers have until December 30, 2025, to secure authorization.
Why this matters for Cross-Border Payments
For businesses facilitating cross-border payments between Spain and India, Spain's rigorous regulatory framework introduces significant operational hurdles. The stringent AML/KYC requirements, mandatory registration, and transaction reporting create a dual compliance burden, as companies must navigate the complex rules of both countries simultaneously. This can lead to increased operational costs and potential transaction delays, complicating what is often pitched as a seamless payment method. These layers of oversight can create significant friction for businesses relying on crypto for swift international settlements.
How Lightspark Enables Compliant Crypto-Native Payments
Lightspark offers a global payments platform built on Bitcoin's Lightning Network, designed to streamline cross-border transactions. Its core products, Lightspark Connect and Grid Switch, provide two distinct on-ramps to its "Money Grid." Connect offers native Bitcoin access, managing the complexities of nodes, liquidity, and routing. Grid Switch, on the other hand, allows institutions to leverage domestic real-time payment networks, enabling fiat-to-fiat transfers that settle over the Lightning Network without direct crypto handling.
This infrastructure helps businesses overcome the friction of dual-country regulations by providing tools that facilitate compliance. Features like audit-ready reporting, flexible key management, and built-in compliance integrations for requirements like the Travel Rule and OFAC screening empower regulated institutions to meet their obligations. By abstracting away technical and operational complexities, Lightspark enables faster, lower-cost payments, turning a compliance challenge into a streamlined process.
Learn more about streamlining global payments by contacting Lightspark.
Notice: This article is provided for informational purposes only and does not constitute legal advice.
Sources
- Fierro, Paloma, and Ignacio Herrezuelo. "Spain - Cryptoasset Regulation Snapshot." Linklaters, Linklaters LLP, 20 Aug. 2024, www.linklaters.com/en-us/insights/blogs/fintechlinks/2024/august/spain-cryptoasset-regulation-snapshot.
- López-Ibor Aliño, Alfonso, et al. "Blockchain & Cryptocurrency Laws and Regulations 2025 – Spain." Global Legal Insights, Global Legal Group, 25 Oct. 2024, www.globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/spain/.
- Plasencia, Ricardo, et al. "CMS Expert Guide to Crypto Regulation in Spain." CMS Law.Tax.Future, CMS Legal, 18 June 2025, cms.law/en/int/expert-guides/cms-expert-guide-to-crypto-regulation/spain.
- "Spain - Cryptocurrency Laws and Regulation." Freeman Law, Freeman Law, freemanlaw.com/cryptocurrency/spain/.
