- Spanish financial institutions, including BBVA, Santander, and Caixabank, are setting the stage to provide Bitcoin and other cryptocurrency services by 2025.
- The new MiCA (Markets in Crypto-Assets) regulation, enforced by the CNMV, is expected to increase cryptocurrency demand in Europe.
As the European Union’s MiCA regulation is set to take effect on January 1, 2025, Spanish banks are proactively aligning their services to include cryptocurrencies. This strategic move was highlighted during the Merge Madrid event held from October 8-10, where financial leaders discussed the impending changes and their implications for the banking sector.
Francisco Maroto, BBVA’s Head of Blockchain and Digital Assets, shared insights into the bank’s preparedness for offering custodial and trading services. BBVA has been a pioneer in integrating cryptocurrency services, starting in Switzerland—a jurisdiction with advanced crypto-asset regulations. The bank successfully expanded its cryptocurrency offerings to Turkey and plans to extend these services across its network, pending regulatory approvals.
This development follows BBVA’s launch of the Fidelity Physical Bitcoin ETN in Spain in 2023, an investment product that replicates Bitcoin’s performance and is traded on stock exchanges. The next phase for BBVA involves rolling out comprehensive crypto-asset buying and selling services to foster growth in Spain and broader Europe.
Banco Santander is also embracing the new regulatory landscape. John Whelan, the bank’s Head of Digital Assets, emphasized the growing interest in cryptocurrencies as an alternative asset class. Santander has already been offering an Exchange Traded Product (ETP) through its digital bank, Openbank, and plans to expand its crypto services across the Eurozone by the first quarter of 2025. This includes utilizing its digital infrastructure to provide regulated access to crypto-assets.
On the other hand, CaixaBank, along with other banks like Bankinter and Sabadell, is evaluating the types of cryptocurrency services it might offer. Joan Manel Arcas, CaixaBank Tech’s Project Manager for Innovation and Blockchain, indicated a clear move towards launching crypto trading services post-MiCA implementation. CaixaBank is actively exploring partnerships with fintechs to develop these services, demonstrating its commitment to adapting to market demands.
Market Dynamics and Consumer Demand
The anticipation of MiCA is expected to offer more legal certainty within the EU’s crypto-asset market, enhancing consumer protection by holding crypto operators to standards similar to other financial assets. This regulatory clarity is likely to increase the demand for cryptocurrency-related services.
However, Francisco Maroto noted that while the regulatory framework would enable banks to legally offer cryptocurrencies, the actual market demand in Europe remains to be fully realized. He contrasted the higher cryptocurrency adoption rates in countries with volatile currencies, like Argentina and Turkey, with the relatively lower adoption rates in Europe.