Spanish Authorities Force Cryptocurrency Holders to Identify Themselves
- Politicians have approved a draft law that will force Spanish residents to reveal how much cryptocurrency they hold.
Tremble in fear, Spanish cryptocurrency holders, the taxman is coming for you.
A recent report by ABC Economia indicates that authorities in the country are going to be clamping down on residents with crypto holdings.
Currently, any profit derived from a cryptocurrency transaction is subject to income tax laws - although transactions made with Bitcoin specifically are exempt from value-added tax.
Regulators have now put forward a draft law, which the government approved last Friday, that will force cryptocurrency holders to identify themselves. They will also have to state how much cryptocurrency they have in their possession.
"It is stated as mandatory,” said Minister of Finance, María Jesús Montero, “that people and companies inform the Tax Agency about this."
Spaniards with cryptocurrency abroad must also report any Bitcoin held in offshore accounts under the ‘720 declaration’. Introduced in 2012, this law requires Spanish residents to inform tax authorities of specific assets that they hold abroad.
Fortunately for most crypto fans, this law is unlikely to apply to them. Only people with certain assets valued at over €50,000 ($57,000) have to fill in the form.
Cryptocurrency in Spain
Despite these new rules, Spain has been fairly friendly towards cryptocurrency holders in the past twelve months. In February, the country’s regulator, the Comisión Nacional del Mercado de Valores, along with its central bank, Banco de España, issued a joint statement saying that cryptocurrency is not legal tender and, as a result, is not subject to traditional financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
In the same month, reports suggested that the government was preparing regulation to attract cryptocurrency firms to Spain.
“The level of the digitalization for companies will be key,” Garcia Egea, a member of the ruling Popular Party, told Bloomberg earlier this year. “We hope to get the legislation ready this year. We want to set up Europe’s safest framework to invest in ICOs.”
Egea hinted at what rules that legislation might contain, mentioning tax breaks for Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term firms working on big data and 3D printing during his interview with Bloomberg. But as of yet - with the exception of the recent tax laws - we are yet to see these new laws materialise.
Tremble in fear, Spanish cryptocurrency holders, the taxman is coming for you.
A recent report by ABC Economia indicates that authorities in the country are going to be clamping down on residents with crypto holdings.
Currently, any profit derived from a cryptocurrency transaction is subject to income tax laws - although transactions made with Bitcoin specifically are exempt from value-added tax.
Regulators have now put forward a draft law, which the government approved last Friday, that will force cryptocurrency holders to identify themselves. They will also have to state how much cryptocurrency they have in their possession.
"It is stated as mandatory,” said Minister of Finance, María Jesús Montero, “that people and companies inform the Tax Agency about this."
Spaniards with cryptocurrency abroad must also report any Bitcoin held in offshore accounts under the ‘720 declaration’. Introduced in 2012, this law requires Spanish residents to inform tax authorities of specific assets that they hold abroad.
Fortunately for most crypto fans, this law is unlikely to apply to them. Only people with certain assets valued at over €50,000 ($57,000) have to fill in the form.
Cryptocurrency in Spain
Despite these new rules, Spain has been fairly friendly towards cryptocurrency holders in the past twelve months. In February, the country’s regulator, the Comisión Nacional del Mercado de Valores, along with its central bank, Banco de España, issued a joint statement saying that cryptocurrency is not legal tender and, as a result, is not subject to traditional financial Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term.
In the same month, reports suggested that the government was preparing regulation to attract cryptocurrency firms to Spain.
“The level of the digitalization for companies will be key,” Garcia Egea, a member of the ruling Popular Party, told Bloomberg earlier this year. “We hope to get the legislation ready this year. We want to set up Europe’s safest framework to invest in ICOs.”
Egea hinted at what rules that legislation might contain, mentioning tax breaks for Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term firms working on big data and 3D printing during his interview with Bloomberg. But as of yet - with the exception of the recent tax laws - we are yet to see these new laws materialise.