Spain introduces law to force investors to reveal crypto holdings

Spanish cryptocurrency enthusiasts just received a bit of news that won’t make most of them happy. A local news outlet in the country, ABC, reported last Friday that the government has signed off on a draft bill that would force crypto investors to reveal their holdings in order to properly assess taxes on the digital assets.

The new rules were announced during a press conference held by Spain’s finance minister, María Jesús Montero. The change in legislation will force all Spaniards to declare the assets whether they live in the country or overseas. Montero explained that, with the new legislation, the government would be able to identify crypto holders, as well as “the balances contributed by these virtual currencies.”

Spain is working on increasing regulation over the crypto industry. This year alone, it has sent requests to more than 60 businesses, asking them to provide identification of their users. Should the draft bill be accepted as law, crypto holdings will be required for inclusion into the 720 form, Spain’s tax reporting structure. Those that don’t properly report their assets through the tax filing can be fined as much as $5,745 for each discrepancy.

In addition, according to ABC, the draft bill “will include the prohibition by law of new tax amnesties . This was an old announcement by the former minister, Cristóbal Montoro, and results in a measure of little influence: tax amnesties may continue to be approved, although this will require reforming the current anti-fraud law, which introduces a new obstacle, but little else.”

The European Union (EU) currently doesn’t have standard regulations for cryptocurrencies, particularly when it comes to cryptocurrency. Some countries, such as Poland, have reversed course on previous legislative efforts to address taxes. Others, including Malta and Portugal, have established policies in place to ensure the governments can collect taxes on crypto assets.

Despite the lack of regulations, the EU is moving toward recognizing crypto as a legitimate currency. An announcement released recently by EU officials stated, “A digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money.”