A new bill, approved just today by the Finance Commission of the Spanish Congress, would force the Spain-based custodian services to report ownership of the managed cryptocurrencies. Stuck in Congress for some time, the bill aims to fill a loophole in legislation that allowed some users to bypass the requirements while avoiding paying taxes.
Custody Services based in Spain would have to report ownership of assets
Under a new bill approved by the Spanish Congress ‘Finance Commission on Wednesday, Spain-based custody services would be required to report their clients’ holdings as well as any operations performed with them. The law entitled “Preventing and Combating Tax Fraud” would make reporting of cryptocurrency funds in these institutions mandatory and would also include individuals or institutions associated with initial coin offerings in the mix.
So far, these institutions have not had to report any of their activities to the tax authorities, and the responsibility for this rests with the actual owners of the cryptocurrency. Current law requires users to report cryptocurrency holdings in excess of $ 50,000, as well as any income from trading them.
The law also provides for the exchange of cryptocurrencies in this area, so that all cryptocurrency exchanges based in Spain would also have to report the identity of their customers and the business activities of each individual customer to the tax authorities. The bill, which was passed by 21 votes in favor and 14 against, will now go to the Senate to be approved or thrown out.
However, the changes don’t just affect cryptocurrencies. The tax authority is also setting new limits on the amount that residents of Spain can receive in cash, lowering it to € 1,000 for entrepreneurs and professionals and € 2,500 for others.
Tough stance on crypto
This is yet another new rule that complements the already tough stance that Spanish governments and their lawmakers have sought on cryptocurrency issues. Earlier this month, the Spanish government also signed a royal decree mandating exchanges and crypto custodians to produce a report on all of their cryptocurrency transactions in order to share their data with the European Union country block. This decree also includes reporting “suspicious” transactions to the authorities.
What do you think of the bill approved in Spain? Let us know in the comments below.
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