Spain’s Central Bank has issued a public release detailing the risks and uses of cryptocurrencies and ICOs, highlighting that no regulatory institution in the country has approved or registered either a cryptocurrency or an ICO.

This comes just a day after a government’s spokesman proposed in a press conference that the Spanish Congress of Deputies should make the appropriate legislative changes to encourage blockchain and cryptocurrency investments in the country.

In the statement by the Energy, Travel and Digital Commission, Teodoro García Egea, member of the centre-right Popular Party, called for the country to implement the necessary regulations “to attract investment, talent, and employment, to lead this digital transformation around international payments and blockchain technology”.

This statement didn’t come without a word of warning about the risks involved, and the “speculative component” of cryptocurrency valuation. Thus, the government advises caution until regulation is established.

Read more: OpenBank’s transformation looks beyond Spain

Most notably, the government said that cryptocurrency issuers, exchanges, and virtual wallet providers would have to be fully AML compliant, having to identify their customers.

Following the cryptocurrency hype in the past year, and the success of blockchain technology around the world, it is understandable that the government is now turning their eyes towards more innovative tech enterprises. Although Spain has a relatively thriving fintech environment, it’s nowhere near the UK’s.

This also comes just as Spain manages to make it into the semi-core EU countries to the eyes of international markets and out of the periphery, according to its treasury head Emma Navarro.

These are big news since the Mediterranean country was among the most affected during the recession. Spanish bond yields this week hit their narrowest gap over the equivalent German debt since 2010.

Related: Payments innovation reigns in Spain

by Henry Vilar
Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: