Spain’s financial regulator, the CNMV, has issued an urgent warning to unlicensed virtual asset service providers (VASPs) operating in the country. The firms must either move customer funds to an authorized VASP or coordinate with one by July 1, 2024. The order comes just one day after the June 30 compliance deadline for the European Union’s Markets in Crypto-Assets (MiCA) regulation.
Why the CNMV stepped in
The CNMV’s warning targets VASPs that have not yet obtained a license under Spain’s new crypto framework. Under MiCA, which took full effect on June 30, all crypto-asset service providers in the EU must be authorized. Spain’s regulator is now enforcing that rule with a hard deadline. Unlicensed firms that fail to comply by July 1 could face enforcement actions, though the CNMV did not specify penalties in its statement.
What unlicensed VASPs must do
The CNMV gave two options. First, unlicensed VASPs can transfer their customers’ funds and crypto assets to a provider that is already authorized in Spain. Second, they can coordinate with an authorized VASP to handle the transition of services. The regulator stressed that the responsibility for protecting customer assets lies with the unlicensed firms until the migration is complete.
The MiCA compliance deadline
MiCA, the EU’s landmark crypto regulation, set June 30, 2024, as the date by which all VASPs must be licensed. Spain transposed MiCA into national law earlier this year, giving local firms a clear path to registration. But not all VASPs moved fast enough. The CNMV’s warning suggests a number of providers are still operating without the required authorization.
The July 1 deadline is tight. Firms that have not started the migration process now face a scramble. The CNMV has not said how many VASPs are affected, but the warning applies to any unlicensed entity offering crypto services in Spain.
For customers of unlicensed VASPs, the message is clear: check whether your provider is authorized. If it isn’t, your funds may need to be moved soon. The CNMV has published a list of authorized VASPs on its website.
The clock is ticking. July 1 is less than a week away.
