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Crypto.com Gets Green Light from Spain. Is it the Most Regulated Global Exchange?
Crypto.com is making waves with its acquisition of regulatory approvals. The digital assets exchange has successfully secured license after license in its bid to push forward its “regulatory license momentum.”
Last week, the Singapore-based company got the nod from the Bank of Spain to offer its services in the country via a Virtual Asset Service Provider (VASP) license, just three weeks after securing the Major Payment Institution (MPI) license for Digital Payment Token (DPT) from the Monetary Authority of Singapore (MAS).
These moves are the latest in Crypto.com’s efforts to carve out a role as a formidable contender in the crypto market after obtaining a raft of other licenses in recent months.
Crypto.com Secures Regulatory Greenlights
Besides Spain and Singapore, Crypto.com has gotten approvals in dozens of other countries, including:
- Digital Asset Service Provider (DASP) by France’s Autorité des marchés financiers (AMF)
- Authorization from the UK Financial Conduct Authority to operate as a cryptocurrency asset business
- Approval in Greece from the Hellenic Capital Market Commission
- Pre-registration undertaking from the Ontario Securities Commission and Canada Securities Administrators
- Registration under the Electronic Financial Transaction Act as a Virtual Asset Service Provider in South Korea
- Authorization in Italy by the Organismo Agenti e Mediatori
Kris Marszalek, co-founder and CEO, remarked that obtaining the VASP registration was the latest illustration of the company’s “commitment to compliance and eagerness to work with regulators and public officials in responsibly advancing crypto and blockchain technology.”
The firm’s Singapore’s MPI license comes after acquiring its in-principle approval in June last year.
Its entry into some of these economies, such as Singapore, is no mean feat. MAS, which doubles as the central bank and financial watchdog for the city-state, has previously sworn to be “brutal and unrelentingly hard” on “bad behavior” in the sector.
As a result, Singapore has become something of a battleground for cryptocurrency businesses, especially since it had given off the vibe that it was a welcoming hub for the space.
Since introducing licensing for crypto outfits in January 2020, Singapore has only handed less than 20 licenses out of nearly 200 applications, with industry leader Binance being one of the unlucky applicants.
It’s perhaps reflecting on this that Crypto.com acknowledges the significance of securing approval, perceptively noting it was “proud” and that “The Monetary Authority of Singapore is recognized globally as a regulator that ensures responsible innovation of the digital assets sector.”
Big Win for Crypto.com and Crypto in General
With these aggressive licensing efforts, Crypto.com illustrates its ambition to tap into the global market while complying with local regulations.
This strategy increases accessibility to Crypto.com’s services, which will continue to court customers and drive cryptocurrency adoption — a win not just for the company but the larger ecosystem.
It also signals that the company would rather get on the good side of regulators in an environment with the stakes high for crypto companies thanks to a precarious regulatory climate.
In general, the implications of these regulatory achievements extend beyond Crypto.com itself. When any exchange gets the regulatory green light anywhere, it’s a rubber stamp on the significance of cryptocurrencies and their underlying principles of decentralization, transparency, and financial inclusion — at least in the eyes of the public.
In addition, this regulatory compliance sets a standard for other crypto firms to do the same. This encourages trust among everyone — from the authorities to service providers to investors.
What is Crypto.com?
Initially known as “Monaco,” Crypto.com came on the scene in 2016 before later rebranding to its current name after it purchased the Crypto.com domain. Currently, it ranks as the 19th largest exchange in trading volume and has a user base of 80 million spanning over 90 countries.
The exchange, which sells itself as “the world’s fastest-growing cryptocurrency exchange,” supports more than 200 cryptocurrencies that users can buy, sell, and trade.
The larger Crypto.com platform also includes Visa card perks, non-fungible tokens (NFTs) trading, and access to educational guides through its Crypto.com University.
The Visa card, one of the platform’s flagship offerings, allows users to earn cash back through the network’s native token Cronos (CRO). Users can then trade it for other digital coins or convert it into fiat money on the exchange.
Holding a significant stake in CRO grants users several advantages, including reduced trading fees, higher interest rates for staking, and higher credit card rewards.
Users also have access to the Crypto.com DeFi wallet, a non-custodial wallet that lets them manage over 700 different tokens on more than 20 blockchains. They can also send crypto, view popular NFT collections, earn passive income by locking up assets such as CRO, USDT, and ETH, and manage their NFTs within the Crypto.com App.
In 2021, Crypto.com made the headlines for splurging $700 million on a 20-year naming rights deal for the Staples Center. The landmark deal, the largest ever in the sports world, solidified the exchange’s presence not just in crypto but also the outer world.
Final Thoughts
Crypto.com’s aggressive pursuit of regulatory licenses speaks to its ambition to conquer the crypto landscape. Its headway in jurisdictions that are not exactly a walkover illustrates it is doing something right. It’s also proving that players in the space are better off being in the good books of regulators than not.
The success of Crypto.com is good for the overall health of the industry because when one platform progresses, crypto advances to the mainstream. The exchange’s impressive track record thus far signals a bright future ahead for itself.
