On Oct 13, 2020, Spain’s Minister of Finance Maria Jesus Montero said at a press briefing that the country’s executive had approved a new anti-tax fraud bill.
The proposed legislation, if passed into law, would require cryptocurrency owners to disclose their crypto holdings and earnings. The bill that aims to crack down on tax fraud now has the government’s approval and can cross to parliament for dialogue and final approval.
According to Spanish publication Criptonoticias, the bill, titled “Act on Preventive Measures Against Tax Avoidance,” seeks to exert greater control over digital assets. An excerpt from the publication noted that the bill would “force citizens to provide detailed information on balances and transactions conducted within and outside Spain.”
In what could be seen as a blow to the crypto community, financial watchdogs globally seem to have stepped up their tax overwatch measures on crypto. Their intended goal is to corral a share of any profits made via the nascent crypto sector.
The Spanish tax authority (AEAT), started sending out tax notices in April to remind digital asset owners in their tax obligations.
Bitcoin for Spain’s Congress
As the new tax bill makes its way to parliament for final approval, crypto influencers in Spain have taken steps to lobby for the acceptance of crypto.
As reported on Oct 11, lawmakers in the lower house of Spain’s parliament received BTC worth a Euro each as part of an educational campaign to get them acquainted with the asset class.
Blockchain education platform Tutellus launched the campaign to demonstrate to the lawmakers the ‘transcendental’ role crypto will soon have on the economy and society.
The news was shared by local Spanish publication ABC which quoted Miguel Caballero, founder of Tutellus, who launched the crypto for congress campaign.
“With a digital euro on the near horizon, we believe that our deputies, as citizens’ representatives, should be aware of the benefits and risks of cryptocurrencies,” Caballero asserted.
Whether or not the attempt to introduce policymakers to crypto had the intended impact isn’t clear. Perhaps the congress members understood the importance for this emerging digital class and the need to protect its core principles of decentralization and anonymity.
Proposed Bill Could Complicate Crypto Use
A law mandating the reporting of all dealings in crypto, even for assets held or transacted internationally, could hinder adoption of this up-and-coming technology in Spain.
Crypto users across the county will now be watching to see if lawmakers reject the proposed bill that would force Spaniards into disclosing their crypto holdings.