Spain Introduces Innovation-Aimed Crypto Regulation, But Political Unrest Might Cause a Setback

The "Sandbox" conceptCurrently, there is no regulatory framework for cryptocurrencies in Spain.

According to the Library of Congress it may be viewed as a "Digital good" and can therefore comply with the rules of barter in Spain's civil code.

Spain seems to be drawing its inspiration from the UK's success with fintech-oriented testing grounds.

A week ago, Barcelona revealed it would launch a specialized blockchain space in the city's tech hub to foster growth and innovation in the local digital ecosystem, while in April, Spanish Banco Bilbao Vizcaya Argentaria became the first global bank to issue a loan using blockchain.

In March, even the governor of the Bank of Spain came out in favor of the possibilities of blockchain, albeit noting that "The technology is not yet mature".

To this end, the draft thus proposes that the government cooperate with the National Securities Market Commission and the Bank of Spain to coordinate a common regulatory position regarding crypto in the broader European context.

Political unrestNews about innovation-aimed crypto regulations in Spain have been outshadowed by the ousting of the current PM Mariano Rajoy.

As CNBC points out, Rajoy's departure could trigger another political crisis in southern Europe, "Further unnerving financial markets already wrongfooted by failed attempts to form a government in Italy three months after a national election".

La Vanguardia argues that the "Sandbox" project "Has already suffered a major hit" with the departure of one of its main innovators Luis de Guindos, who left on March 8.Meanwhile, Malta may intercept Spain's ambitions, as on March 28, the Malta Gaming Authority published a consultation document which "Provided guidance on the use of Distributed Ledger Technology and on the acceptance of Virtual Currencies through the implementation of a Sandbox Environment".

" the approval of laws is not delayed as much as in Spain.