On May 30, the Spanish Congress unanimously supported[1] draft legislation that would favorably regulate blockchain technology and cryptocurrencies in the country. While the move marks pro-crypto tendencies among local politicians, there are complications that the reform might stumble upon, namely EU compliance laws and the very recent overthrow of prime minister Mariano Rajoy.
The “sandbox” concept
Currently, there is no regulatory framework for cryptocurrencies in Spain. Bitcoin is thus not considered legal currency in the country. According to the Library of Congress[2], however, it may be viewed as a “digital good” and can therefore comply with the rules of barter in Spain’s civil code.
Due to the absence of a supervisory framework, the draft calls for a review of regulations pertaining to Bitcoin and altcoins, as well as to blockchain, proposing to introduce the technology to the Spanish market through “controlled testing environments,” commonly referred to as “regulatory sandboxes.”
The sandboxes will allegedly help to foster fintech startups, which was one of the main areas discussed by Congress last Wednesday. “A company cannot wait years for the law to regulate its new activity, but at the same time it has to be sure that it will not be sanctioned for innovating even if its developments are unknown at the moment”, explains[3] Marta Plana, the president of Foro Fintech, a local organisation that defends the needs of innovative companies in the financial sector.
Spain seems to be drawing its inspiration from the UK’s success with fintech-oriented testing grounds. In March, Britain’s Financial Conduct Authority (FCA) announced the launch[4] of a global fintech regulatory sandbox, after the successful 2016 release of a UK sandbox. Over three years, the UK has approved around 80 new licenses, while more than
