What investors need to know

The outlook for cryptocurrencies in Spain is one of radical transformation. From strategic government initiatives to the strengthening of the regulatory framework and influential market players, everything seems to be in full swing. Until recently peripheral to the digital economy, Spain has taken a front-line role in integrating blockchain technology into its trade structure. Needless to say, this proactive stance is further evidenced by the fact that Spain has rushed to adopt comprehensive cryptocurrency regulations, which helps it to be among the other pioneering countries in the global digital currency overhaul. The country’s willingness to implement measures towards a safe and thriving cryptocurrency environment within its borders marks a true new beginning of innovation and growth.

In February 2024, the city of Torrevieja largely transitioned to a “crypto-centric” economy, as APYMECO took the lead with the idea of ​​incorporating cryptocurrencies into daily circulation. This is part of a broader effort to integrate blockchain technology in various phases to overhaul the city’s economic infrastructure.

In addition, the Spanish government approved the implementation of the European Market for Crypto-Assets Regulation (MiCA) with a six-month advance notice in October 2023. This step forward should establish Spain as a leading country in terms of legal clarity and investor protection for crypto-asset services by December 2025.

The cryptocurrency market in Spain is expected to reach $106 million in 2028, up from $59 million in 2023, at a CAGR of 13.57%. The Spanish government is committed to cryptocurrency, and with cities like Torrevieja becoming crypto-friendly and accelerating the implementation of MiCA in the country, this will encourage the development of more cryptocurrency companies and their users.

There is no specific draft regulation for coin offerings in Spain, but ICOs can fall under the general legislation on securities and investments. The Spanish securities market is supervised by the CNMV. The CNMV has the right to deal with advertising related to cryptocurrencies. It stated that under Spanish law, cryptocurrencies are not considered securities. However, given the wording that supports the expectation of profit in the ICO token, such ICO tokens can be considered financial instruments and in this role can be included in the very broad concept of securities.

Major regulatory bodies such as the Spanish Securities and Exchange Commission, CNMV and the Bank of Spain are heavily involved in regulating cryptocurrency solutions. The leading association that enforces compliance in the cryptocurrency market in Spain is the Association Española de Fintech, AEFI.

Importantly, this includes A&G bringing a crypto fund to the country in July 2023, evidence of the growing role that digital assets are beginning to play in the investment space. El Corte Inglés also entered the crypto space when it said in March 2022 that it was working with Deloitte to develop a cryptocurrency exchange platform for its clients.

Other major players include Bit2Me, Vestige Fi and Whallera, which operate in the Spanish cryptocurrency market, thus playing a very important role in the ecosystem of services such as the stock exchange and financial technology solutions.
This was condensed into what was called the Spanish cryptocurrency market: proactive government activity, dynamic regulatory compliance, and strategic investment, all supported by a strong network of key players. This is what created the synergy, placing Spain at the top of the global cryptocurrency scene and setting the standard for others to follow.