A Binance logo is seen on its stand, at the Viva Technology conference dedicated to innovation and startups, at the Porte de Versailles exhibition center in Paris, France June 17, 2022. REUTERS/Benoit Tessier

MADRID, July 8 (Reuters) – The Bank of Spain has registered the local unit of the world’s largest crypto exchange, Binance, as a virtual currency platform with procedures in place against money laundering and the financing of terrorism.

The bank said registered providers must comply with rules regarding money laundering and terrorist financing, but added that it does not oversee the platforms’ financial and operational risks, and registration in the register does not does not imply approval of its activities by the central bank.

Binance, which has around 120 million users worldwide, tweeted on Friday that its register in Spain would allow it to offer crypto-asset trading and custody in the country under central bank rules.

The record signals that Binance is gaining momentum in Europe after France and Italy also included it in their national registries in recent months as the European Union prepares new regulations on the sector.

Cryptocurrency companies will need a license and customer guarantees to issue and sell digital tokens in the European Union under new rules agreed last week by the bloc to tame a volatile market. Read more

Under current rules, there is no cross-border approval of crypto services in the EU, but this will change with new rules due later in 2023.

Globally, crypto assets are largely unregulated, with domestic operators in the European Union only required to show checks to combat money laundering.

A French member of the European Parliament earlier this week urged the French market regulator to reconsider its decision in May to register Binance, citing a recent Reuters investigation into money laundering on the platform. Read more

The Reuters report revealed that Binance served as a conduit for the laundering of at least $2.35 billion in illicit funds. Read more

Reporting by Joan Faus, editing by Andrei Khalip and Louise Heavens

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