Spain citizens are now required to disclose all crypto assets

October 25, 2018
Darya Karatkevich

As cryptocurrency becomes more and more common in our everyday life, more and more state governments take an active part in its regulation. On October 24, Japan approved Japan Virtual Currency Exchange Association (JVCEA) in an effort to establish strict industry guidelines. New York State Department of Financial Services has just approved the license for Coinbase Custody to operate as a Qualified Custodian under the state banking law. Following suit, in its recent move the Spanish Ministry of Finance turned to crypto as a way to fill the loophole of taxation in the country with 33.8% youth unemployment.

In a draft anti-fraud law approved by the Council of Ministers on October 25th, Finance Minister María Jesús Montero emphasized that the new law would mandate the identification of all cryptocurrency holders, and the amounts they own in virtual currencies. Those Spain citizens who have their crypto accounts stored offshore are also required to disclose them in their annual tax declaration, minister emphasized.

Spanish crypto regulatio

The draft anti-fraud law also presented a couple of more changes that might also affect cryptocurrency traders and holders. Among them is a significant expansion of the list of countries designated as ‘tax havens.’ Additionally, a special taskforce has been made, which consists of over 200 officials, appointed specifically to monitor tax evasion and tax defrauders who owe Spanish Treasury 600,000 euros and more, which is significantly down from the previous threshold of 1 million euros.

What also might be significant for crypto traders (depending on whether the Spanish government will include trading in crypto under ‘commercial activity’ in the final anti-fraud law) is the so-called ‘Tobin tax.’ According to its provisions, only intraday net transactions will be taxed, so users buying and selling assets will be taxed only based on their position at the start and close of the session, without regard of how many trades took place during the trading period.

Post written by Darya Karatkevich
Darya is a blockchain market observer with 5+ years of experience as an author and editor for major tech blogging platforms. Her fortes are blockchain technologies and solutions, cryptocurrencies and crypto-related regulations.

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