Country of Spain Drafts New Crypto Law to Make Investors Disclose All Bitcoin Holdings

Spain Drafts Law To Make Investors Disclose Their Crypto Holdings

If you live in Spain, you might need to report your crypto holdings to the Spanish government soon. A new draft law has been approved by the Spanish government that will make any crypto holders in the country need to identify their holdings, gains and balances. The measure was taken mostly to curb anti-money laundering and for tax purposes.

This new draft law was announced by María Jesús Montero, the Minister of Finance of Spain. According to the information divulged by the minister in the press conference, the holders of crypto assets will need to declare them independently on whether they are on Spain or not.

Isabel Celaa, a spokeswoman for the Spanish administration, has revealed during the press conference that several other anti-fraud measures will also be launched by the government in a clear effort to prohibit people from laundering money using cryptos and then hiding their transactions.

The minister has affirmed that it is mandatory for people to inform the Tax Agency about their crypto operations in case they are Spanish citizens living abroad or if they are foreigners living in Spain for more than a year.

While the government has proposed this law, it will still need to be voted by the Congress in order to be approved, so the debate will happen soon as anti and pro crypto spokesmen will try to turn the tide of the vote on their interest.

Spain Starts Efforts To Include Crypto Formalization In The Laws

Crypto formalization has become a hot issue as many countries have outright banned it and others are having a more positive tone on their decisions about it. Spain is the latter, as it does not intend to enact any crypto ban as countries like India and China are doing it now.

However, the concerns of the Spanish government with cryptos being used for money laundering are quite visible. Back in April, the country has decided to sent identification requests to 60 crypto-related businesses in the industry and now it is snooping into the user’s accounts. Cryptos will be accepted in the country, sure, but people hoping for complete freedom will be dissatisfied.

Now, as Bloomberg recently noted, the draft, if it actually becomes a law, will see crypto holders including their crypto assets into the 720 form, which is used for tax reports in the country. Also, penalties will be severe, consisting of about $5,000 EUR for each inaccuracy.

Crypto Legislation Is Being Defined In Europe

Slowly, but surely, crypto legislation is being defined in Europe. Countries like Poland have a more negative stance on cryptos and were reported to instigate negative conditions for the industry, while Malta and Portugal, for instance, have a considerably more open stance, Malta being known as the Blockchain Island.

Some very important countries like the United Kingdom and France, for instance, have a sort of a mixed stance, with some measures that will help the market and some others that might end up harming it along the way.

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