The draft of a new law, approved today by the Spanish Congressional Finance Commission, will report ownership of cryptocurrencies under Spain-based Custody Services Management. The law, which was stuck in Congress for some time, aims to close a gap in the law that allows some users to circumvent the requirements and avoid paying taxes in the process.
Spain-based custody services must report property ownership
According to the draft of a new law, third-party custodial services based in Spain must report their clients’ holdings as well as all work done with them. Approved On Wednesday by the Finance Commission of the Spanish Congress. The law, titled “The fight against prevention and tax fraud”, will mandate the report of any cryptocurrency fund in these institutions, and will also include individuals or institutions related to the initial coin offerings in the mix.
Until now, these institutions were not required to report any of their activity to the tax authorities, and the responsibility for doing so was with the actual owners of the cryptocurrency. Current law makes it mandatory for users to report holdings of more than 50,000 euros in cryptocurrency as well as all earnings from their business.
In addition, the law includes cryptocurrency exchanges in the region, so all Spain-based cryptocurrency exchanges must report their clients’ identities and the operations of each of them to the tax authorities. The draft of the law, which was approved with 21 votes for it and 14 votes against it, will now go to the Senate for approval or uprooting.
But the changes do not go just to regulate cryptocurrency. The tax authority is also setting new limits on the amount that residents of Spain can receive as payments in cash, reducing it to 1,000 euros for entrepreneurs and professionals and 2,500 euros for others.
Strict approach to crypto
This is another new rule that comes to compliment the already strict stance that the Spanish governments and its MPs have applied for matters related to cryptocurrency. Earlier this month, the Spanish government also signed on A royal decree that mandates exchanges and crypto custodial firms to set up a report of all their cryptocurrency transactions to share their data with EU countries. The decree also includes reporting any “suspicious” transactions to the authorities.
What do you think about the draft accepted law in Spain? Tell us in the comments section below.
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