As Bloomberg reported recently, the Spanish government proposed a controversial bill that would require cryptocurrency investors to disclose their holdings. The measure was taken to combat money-laundering and tax evasion. The new bill was announced by the Spanish Finance Minister Maria Jesus Montero.
The legislation will compel all Spaniards to declare their digital assets regardless of whether they live in Spain or abroad. According to Montero, the new legislation will enable the government to identify crypto owners.
During the press conference, Isabel Ceela, a spokesperson for the Spanish administration revealed that several other anti-money laundering measures will be initiated to prevent people from laundering money using cryptocurrencies.
The Minister stated that it’s a must for investors to notify the Tax Agency of their crypto-related activities.
The government has only proposed the law. The congress will need to vote in order to approve it. The debate on the proposed legislation will soon take place.
Spain ‘s decision to treat cryptocurrencies as a financial asset acknowledges its importance in a global economy. It also implies that finally the time has come to regulate digital assets and curb money laundering using cryptos. This is essential to avoid contradictory treatment by national governments that leave investors confused in an increasingly complex and constantly evolving industry.
It’s worth noting that Spain is one of the world’s crypto-friendly countries. It was one of the first countries to exempt cryptocurrency transaction from VAT. Whether lawmakers will approve the proposed legislation remains to be seen.
Cryptocurrencies are increasingly being accepted
Digital currencies are becoming increasingly acceptable as a form of currency for payments of goods and services. Nevertheless, this could also imply that users face “double taxation” effects that need to be addressed.
Lawmakers in the United States are still debating on whether to consider digital assets as a class of security, which would necessitate additional forms of regulatory compliance.