Skip to main content

Spain Based Custodial Services to Report Ownership of Crypto Assets, According to New Law Draft

Spain Based Custodial Services to Report Ownership of Crypto Assets, According to New Law Draft

A new law draft approved just today by the Finance Commission of the Spanish Congress would make Spain-based custody services report the ownership of the cryptocurrencies under management. The law, which was stuck in Congress for some time, aims to close a gap in the legislation that allowed some users to bypass the requirements and avoid paying taxes in the process.

Spain Based Custody Services Would Have to Report Ownership of Assets

Third-Party custodial services based in Spain would have to report the holdings of its customers, as well as all the operations made with them, according to a new law draft approved on Wednesday by the Finance Commission of the Spanish Congress. The law, titled “Prevention and fight against tax fraud,” would make mandatory the report of any cryptocurrency funds in these institutions, and also includes individuals or institutions related to initial coin offerings in the mix.

Until now, these institutions didn’t have to report any of their activities to the tax authorities, and the responsibility of doing this went to the actual owners of cryptocurrency. The current law makes it mandatory for users to report holdings of more than 50,000 euros in cryptocurrency, as well as all of the earnings coming from the trading of these.

Also, the law includes cryptocurrency exchanges in this area, so all Spain-based cryptocurrency exchanges would have to also report the identity of their customers and the operations of each one of them to the tax authorities. The law draft, which was approved with 21 votes for it and 14 against it, now will go to the Senate to be approved or tossed.

But the changes don’t only go to regulate cryptocurrencies. The tax authority also is establishing new limits on the amount that Spain residents can obtain as payments in cash, lowering it to 1,000 euros for entrepreneurs and professionals, and to 2,500 euros for others.

Tough Stance on Crypto

This is another new rule that comes to compliment the already tough stance that the Spanish governments and its lawmakers have applied for cryptocurrency-related matters. Earlier this month, the Spanish government also signed a royal decree that mandated exchanges and crypto custody firms to establish a report of all of their cryptocurrency transactions to share its data with the European Union bloc of countries. This decree also includes making reports of any “suspicious” transactions to the authorities.

What do you think about the law draft approved in Spain? Tell us in the comments section below.



from Bitcoin News https://ift.tt/3uz2ub7
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more