- In Spain, a regulation has been proposed in which, on an annual basis, both owners of cryptocurrencies, as well as crypto platforms, must “declare their operations related to them and their coin holdings.”
- According to the Minister of Finance and Public Function of Spain, María Jesús Montero, if approved, this new regulation will come into force from 2023.
- This regulation is being analyzed in other regions of Europe.
As has been explained on different occasions, the first advance of cryptocurrencies during the Covid-19 pandemic took many governments by surprise.
Digital assets reached an unforeseen impact and valuation in a very short time and the heads of the most important countries in the world began to fear their advance, so one way to take “greater control” over them is through regulations.
Crypto users will have to file statements
Spain, a territory that has an important base of crypto users, has expressed itself on this point and determined that as of 2023, all owners of cryptocurrencies must “declare their operations related to them and their coin holdings”explained the site cryptonews with information from the Spanish media La Vanguardia.
The Minister of Finance and Public Function of Spain, María Jesús Montero, was the one who confirmed the regulations. This regulation, which is also being analyzed by the rest of the countries of the European Union, “will oblige cryptocurrency holders to present an annual declaration of their token purchase and sale operations.”
The holding and transaction reports will not only have to be submitted by the users, but will also be a requirement for all those platforms or companies that offer cryptocurrencies. The bill proposes that exchanges must “submit an annual document with information on crypto movements on their platforms.”
Regulation against fraud or terrorism.
For the regulation to become official, one last step is needed, but it is discounted that Parliament will give it the green light.
This measure will not go separately, but will most likely go hand in hand with a package of laws to combat fraud or terrorism.
Montero described digital assets as “a new form of currency and that the Government at the national level “must be able to regulate to guarantee no type of fraud or undesirable effect“. Currently, the high Spanish inflation is one of the issues on the agenda that has the authorities as well as the citizens concerned.
The new regulation, which would come into effect on January 1, 2023, does not seem to be difficult for holders, those who carry out very few monthly/annual operations, but it will represent a significant obstacle for intraday traders. How will they notify earnings? And what will happen to the losses?
Cryptocurrencies are a nascent economy that presents difficulties for those on the sidelines. Traditional economic specialists must adapt to this new technology. Also government work teams.
The Ministry of Finance has long been behind the users of digital assets, but has already failed in its attempt to make them pay taxes. At the beginning of 2022, the Government was forced to back down on its first plan: Spaniards with cryptocurrencies on foreign platforms were required to declare their holdings.
This was not because of the community’s refusal, but rather because of government incompetence. Users complained that there were “no fields on the asset declaration form for cryptocurrency holdings.” The Ministry of Finance, recognizing its error, announced that it was no longer necessary to make the declaration.
The authorities are once again charging crypto users, but… will it be the charm this time?
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