Spain introduces new crypto bill to crack down on tax fraud

The new crypto bill is meant to cut down on tax fraud and provide clearer regulation for the nascent industry

A new bill proposal in Spain, entitled Draft Law on Measures to Prevent and Combat Tax Fraud, recently got the green light from the country’s central governing entity, the Spanish Council of Ministers.

A video of the briefing released on October 13 from María Jesús Montero, the country’s Minister of Finance, laid out all the details behind the new draft law. Many are concerned the new law is restrictive for Spanish citizens.

“Spain’s government is preparing a bill to oblige owners of cryptocurrencies to disclose their holdings and any gains booked on the assets. The new regulations will form part of a broader package of legislation aimed at cracking down on tax fraud.” Montero explained.

Part of the law states that all citizens of Spain need to report any digital asset usage or holdings, even if they are using assets that are held or transacted outside of the country.

The bill also bans all cash business transactions that are higher than 1,000 euros; a marked decrease from the country’s former 2,500 euro limit. However, the latter limit still applies for non-business transactions between individuals.

Any payment related to business and higher than 1,000 euros must occur in electronic form, which appears to tighten surveillance on Spain’s residents.

The government’s efforts to start enforcing a tax on cryptocurrencies follows an awareness campaign launched by Tutellus and the Blockchain Observatory. The campaign sent the country’s 360 lawmakers one euro worth of Bitcoin to raise awareness of the potential of cryptocurrencies.

The founder of Tutellus, Miguel Caballero, clarified that the Bitcoin was not a donation. The campaign was meant to help increase awareness and introduce the use of cryptocurrencies among lawmakers.

“It is not a donation. Probably many of your Lordships already have some experience in the use of cryptocurrencies, but we would like that those who are not yet familiar with the new money, have the opportunity to get in touch with it.” he explained.

Around the world, the cryptocurrency industry has steadily gained traction over the years. As a result, more countries are working on regulations to keep up with the growth of this nascent industry. Whether or not Spain’s efforts to regulate cryptocurrencies will be welcomed by its citizens remains to be seen.