Financial updates from Spain and the United Kingdom on the 23rd of July
In the realm of financial regulations, the UK maintains a firm grip, particularly on cryptocurrency operations. The Financial Conduct Authority (FCA) enforces a series of stringent measures to ensure compliance and prevent illegal activities.
**Registration and Compliance for Crypto Asset Businesses**
All crypto asset businesses providing services to UK residents must register with the FCA. This includes operators of crypto ATMs if they facilitate transactions involving UK users. The FCA also enforces strict Anti-Money Laundering (AML) and financial promotions rules to prevent money laundering and ensure financial promotions are compliant.
**Enforcement Actions and Future Reporting**
British authorities have been actively enforcing regulations against unregistered crypto operations, including suspected operators of crypto ATMs. From 2026, HMRC will require crypto service providers to collect and report detailed personal and transactional data, enhancing oversight and enforcement capabilities.
**Challenges and Consequences of Non-Compliance**
For crypto ATMs to operate legally in the UK, their operators must comply with FCA registration requirements and adhere to AML regulations. Authorities are actively monitoring and taking action against unregistered crypto ATM operators, highlighting the importance of compliance. FCA enforcement chief Therese Chambers has stated that using unregistered crypto cash machines supports crime.
**Infrastructure Investments and Expansion**
Meanwhile, in the realm of infrastructure, Spanish rail infrastructure manager Adif is investing €7.1 million to upgrade traffic control systems at three major railway centres in northern Spain. Elsewhere, Pontegadea's acquisition of a stake in PD Ports marks its continued expansion into infrastructure, with Brookfield remaining a shareholder. The 3.2GW Sizewell C plant, a major UK nuclear power project, will power over six million homes and support the UK's net zero goals. Global investor La Caisse will invest up to £1.7 billion (€2 billion) for a 20% stake in Sizewell C.
**Other Notable Developments**
In other developments, Amancio Ortega, founder of Inditex, has acquired a 49% stake in UK logistics firm PD Ports via his investment arm Pontegadea. The UK's Financial Conduct Authority (FCA) has announced new rules to simplify remortgaging and shorten mortgage terms. Chancellor Rachel Reeves is pushing reforms to boost competitiveness, but Bank of England Governor Andrew Bailey deems removing the ring-fencing rules as not sensible.
The household debt burden in the UK has fallen to 2.4% of income and is forecast to drop to 2.1% by mid-2026. Orange has reportedly offered €4 billion to acquire the remaining 50% of its Spanish unit, MasOrange. Telefonica Tech is launching 'Perplexity Enterprise Pro' for Spanish businesses, offering AI-powered search with real-time answers, citations, and strong data privacy.
However, the UK is not immune to cybercrime. In the US, crypto ATM scams cost Americans $247 million in 2023, according to the FBI. Spanish energy giant Repsol may have lost around €170 million due to widespread power outages in Q2.
Lastly, the Betsson Group has opened a new technology hub in Malaga, Spain, aiming to expand its gaming and AI development. David Lopez Salido, a veteran of the U.S. Federal Reserve, has been appointed Director General of Economics at the Bank of Spain. The FCA has confirmed that no crypto cash machines are legally registered in the UK.
Investors should take note of the UK's strict financial regulations on crypto asset businesses, as operators of crypto ATMs must register with the Financial Conduct Authority (FCA) and adhere to Anti-Money Laundering (AML) rules, or face potential enforcement actions. On a separate note, the global investment landscape also includes infrastructure development, such as the £1.7 billion ($2 billion) investment by La Caisse for a 20% stake in Sizewell C, a major UK nuclear power project that will power over six million homes and support net zero goals.
