Spanish Government Approves Mandatory Crypto Disclosure Bill

The Ministry of Finance in Spain has approved a draft bill which would require Spanish investors to disclose all crypto holdings held in or outside of the country to financial authorities.

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According to reports from local media ABC, the Ministry of Finance in Spain has approved a draft bill which would require Spanish investors to disclose all crypto holdings held in or outside of the country to financial authorities.

Mandatory reporting of crypto holdings

The new bill was unveiled during a press conference by the Minister of Finance María Jesús Montero.  Montero stated that the new law will make it mandatory for crypto holders to be identified and the balances contributed to them by these digital currencies.

The minister further added that it is now mandatory for people and companies holding cryptocurrencies to inform the Tax Agency about their operations.

The country’s General Directorate on Taxation currently discloses that any profit derived from cryptocurrency investment is taxable as income tax. However, transactions made with Bitcoin specifically are shielded from value-added tax.

The bill also captured Spaniards with crypto holdings abroad. According to the new regulations, such people have been mandated to report their holdings in an annual declaration of goods abroad when filing their 720 tax form.

In addition to all these, the new bill has prohibited new tax amnesties for crypto holders. The bill was drafted to help the government raise roughly 850 million euros in tax revenue.

This would go a long way in helping the government raise funds to cater for some investments and welfare of its populace.

To help the government raise the expected revenue, they have approved the bill to enforce a 0.2 percent tax on purchases of listed shares that are worth more than a billion euros.

It is still unclear if this particular move will have any effect on crypto investments at the moment.

Crypto trading now regarded as a commercial activity

The government included a Tobin tax provision in the bill which now regards crypto trading as a commercial activity.

The bill noted that the total transactions made in a day would be taxed, which implies that purchasing or selling cryptos in a day would be taxed based on the starting and closing positions of the session despite the number of transactions made during the day.

The local media outlet further revealed that the government will set up a 200-man taskforce which would be tasked with monitoring tax evasion issues and those defaulting from tax payment.

The task force will mostly focus on defaulters who owe the country’s treasury 600,000 euros and above. The government is also looking to expand the countries that it considers as tax havens as they aim to block the numerous loopholes for tax evasion.

The penalty involved for providing incorrect information regarding earnings in the country are severe, with a fine of 5,000 euros charged for each inaccuracy.

Interest in cryptocurrencies in Spain is on the rise amidst slowly even though the government revealed back in February that cryptos are not considered as legal tender in the country.

Banco Santander which is the biggest financial institutions in Europe recently took part in the testing of Ripple’s xRapid product as it aims to make cross-border transactions faster and cheaper.

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