Key Takeaways
On April 2, 2025, Spain officially published Royal Decree 253/2025, introducing a strict reporting threshold for cash transactions exceeding €3,000.
While aimed primarily at improving oversight and aligning with EU anti-money laundering (AML) frameworks, this change carries new challenges for those converting crypto to fiat, especially when withdrawing in cash.
This article is about Spain’s new cash withdrawal rules requiring banks and payment providers to report transactions over €3,000 and explores how these regulations may complicate crypto off-ramping for investors and users.
Off-ramping refers to converting cryptocurrencies, such as Bitcoin (BTC) or Ether (ETH), into fiat currency like euros. For crypto users in Spain, the new rule introduces additional scrutiny when withdrawing cash above €3,000 from banks or regulated platforms.
It’s important to note that the obligation to report cash withdrawals over €3,000 lies with financial institutions, not individual customers . However, banks may require advance notice to manage cash reserves.
Though introduced as a traditional financial regulation, the rule has far-reaching implications for the crypto sector, particularly for centralized exchanges, wallet providers, and peer-to-peer users who rely on fiat withdrawals.
For instance, crypto holders based in Spain who use centralized exchanges to convert digital assets into euros, the new rule adds a regulatory checkpoint in the fiat withdrawal process. Withdrawals exceeding €3,000 may face delays or additional verification if the transaction raises red flags, such as an unusual withdrawal pattern.
When a user sells crypto on a centralized exchange, the resulting euros are typically deposited into a linked bank account. This action is monitored, especially if done frequently, in large amounts, or with unusual patterns (e.g. sudden spikes in volume).
If a user then withdraws €3,000 or more in cash from their bank account (where crypto earnings were deposited), it triggers additional verification under Spain’s AML regulations.
The process may include:
The off-ramping process in Spain may involve more administrative steps and potential scrutiny. Transactions may face delays or be flagged if they deviate from expected financial behavior. This may include red flags like:
Exchanges serving Spanish users must strengthen KYC checks, transaction monitoring and internal reporting systems to comply with MiCA and the Travel Rule. Non-compliance could lead to legal action, financial penalties, or loss of EU market access.
While crypto centralized exchange platforms must implement direct compliance measures, peer-to-peer (P2P) users may encounter more nuanced, indirect risks.
For example, if crypto is exchanged for cash in person and that cash is later deposited into a Spanish bank account, the deposit may trigger scrutiny, even if the original crypto transaction wasn’t reported. Financial institutions are required to monitor for large or unusual deposits, especially those that appear inconsistent with the account holder’s typical financial activity or declared income.
This shift undermines the perceived anonymity and flexibility of traditional P2P crypto transactions, increasing the likelihood of bank inquiries, account flags, or escalated reporting, even when the regulations are not directly aimed at crypto itself.
Spain’s move is part of a broader push across the EU. The Royal Decree aligns with the Markets in Crypto-Assets (MiCA) regulation, which seeks to harmonize crypto oversight among member states, boosting consumer protection, ensuring market integrity, and combating illicit financial activity.
MiCA’s stablecoin rules are already prompting fundamental market shifts, such as Tether reportedly exiting the EU due to MiCA’s e-money token (EMT) requirements. This reinforces how local rules like Spain’s amplify the region-wide trend toward tighter compliance.
Spain’s approach aligns with MiCA, which is now in full effect. Still, the country’s implementation reflects a stricter interpretation or early enforcement of MiCA’s broader intent, particularly around transaction reporting, identity verification, and institutional accountability.
Spain’s €3,000 cash withdrawal rule is aimed at curbing large, untraceable cash transactions, but it doesn’t directly apply to cryptocurrency movements. For Bitcoin and crypto holders, the key distinction lies in how and when assets are converted into fiat.
Self-custody solutions, such as cold wallets, fall outside the traditional banking system and aren’t tied to fiat-based cash withdrawals. Since the regulation specifically targets fiat transactions, individuals who manage their crypto without involving centralized exchanges or payment providers may avoid triggering these reporting thresholds, at least until they convert assets to euros.
Even alternative methods like crypto debit cards, such as those from MetaMask (where supported), Coinbase, or Binance, route transactions through licensed fintech providers. These services enforce full KYC/AML compliance and may report activity to financial authorities when local reporting thresholds are exceeded.
As always, users should stay informed and seek professional advice to understand how evolving regulations may impact their specific situation.
Spain’s €3,000 cash withdrawal limit targets fiat rather than crypto directly, but it still impacts crypto off-ramping. Users may respond by diversifying withdrawal methods or avoiding fiat conversion altogether.
Aligned with the EU’s MiCA framework, Spain’s approach signals increasing convergence between crypto regulation and traditional finance, making compliance and regulatory awareness crucial for anyone moving between digital assets and fiat.
If your crypto-to-fiat conversion results in a cash withdrawal exceeding €3,000 through a Spanish bank or payment provider, reporting obligations are triggered automatically for financial institutions. Spain follows the Revised General Tax Regulation (RGAT), specifically Articles 37 to 38 ter, which outline requirements for crypto and fiat transaction reporting. Off-ramping crypto to cash in Spain now involves greater legal and financial risk. Transactions over €3,000, or those made outside regulated platforms, are subject to heightened scrutiny and stricter compliance requirements.
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