Spain strengthens fiscal control over bitcoin (BTC) and cryptocurrencies through the reform of the Draft Law on Prevention and Fight against Tax Fraud that had been analyzed since 2020. This regulation requires declaring the possession of cryptocurrencies both those that are in purses, as in Spanish or foreign custody platforms.
This guideline was included in the provision approved on June 30 by the Congress of Deputies of that nation, as reported by Radio Spanish Television (RTVE). This legislation establishes that operations with cryptocurrencies must be included in the declaration of assets abroad , based on Model 720.
The Model 720 refers to the declaration on assets and rights located abroad, which is considered an informative tax obligation. This tax return must be submitted by persons or entities resident in Spain. However, the Model is being evaluated by the European Justice , by the opinion made by the European Commission based in Brussels, in which it questions its application, specifically by the establishment high fines.
Penalties for not correctly declaring bitcoin holdings
According to a local media, penalties would be established in case of not complying with the reports on holdings of cryptocurrencies. The fines could be 5,000 euros for each data not included, or that contain incomplete, erroneous or false information.
There would also be a fine of 100 euros for each data on cryptocurrencies presented outside the corresponding term .
The use of cash has limits
In addition to what has been mentioned so far, The law contains other changes that refer to the limitation of cash payments for certain economic operations in which an entrepreneur or a professional intervenes, at 1,000 euros, when previously it was 2,500 euros.
Similarly, reduces the cash payment limit from 15,000 to 10,000 euros in the case of Spanish citizens living abroad.
The limit on cash payments has gone against the criteria of the European Central Bank (ECB). The issuing entity rejected this initiative on February 1, 2019. The former president of the ECB, Mario Draghi, asked the Spanish Government to stop the measure and warned of serious risks to the European currency and certain economic sectors of the country.
Thus, Spain joins a global movement to reduce or completely eliminate the use of cash. Through the mandatory use of digital payment systems, the State can track citizens’ transactions. As reported by CriptoNoticias, many people in the world consider this to be a violation of people’s right to privacy .
CNMV and ECB would control cryptocurrencies in Spain
The news about the regulation of cryptocurrencies in Europe are frequent. For example, this media outlined last month that, in compliance with European Union regulations, crypto assets in Spain will be under the orbit of the National Securities Market Commission (CNMV) and the Bank of Spain.
On that occasion it was also mentioned that, according to new provisions, platforms that provide services with digital assets in that continent must have their headquarters in a country that belongs to the European Union.
