Spanish Ministry of Finance Releases Guidelines to Minimize Cryptocurrency Tax Evasion Risks

Spain’s National Tax Agency has published guidelines to reduce tax evasion issues involving cryptocurrencies such as Bitcoin. The document is part of the so-called General Program for the Annual Tax and Customs Control Program.

According to the document, the Spanish Ministry of Finance plans to apply three measures due to the fact that the hype in the crypto market creates “tax risks.” That is why the agency expects to collect information as a countermeasure to combat tax-related crimes.

The watchdog is looking at the first measure to require local crypto exchanges to provide information about digital asset holders. The document explicitly states that they are pursuing such a measure to incentivize voluntary taxation of crypto transactions.

The second opinion submitted by the Ministry of Finance entity reads as follows.

The information obtained is systematized and analyzed in order to facilitate action and control the correct taxation of the operations performed and the origin of the funds used to purchase cryptocurrencies.

But the national institution wants to reach beyond its borders. The document said the finance ministry's plan aims to "strengthen international cooperation" through a third measure of participation in international forums.

The purpose of this is to “collect more information related to cryptocurrencies and other digital assets,” the document explains.

New plans to inspire a new 'digital age'

The Spanish Ministry of Finance also expressed concerns about how technological advances can facilitate criminal organizations to commit financial crimes through cryptocurrencies. However, the document also revealed that the Ministry of Finance is aware of the increasing use of cryptocurrencies, especially in Europe:

“The trend towards digital currencies and the reduction of cash usage has led to an increase in the use of cryptocurrencies as a means of payment, so that by the end of 2020, there were already more than 6,500 cryptocurrencies in circulation. Most of the world’s central banks are developing their own digital currencies, including the European Central Bank with the creation of a digital euro, in which Spain is also involved.”

The annual Tax and Customs Control Program plans to strengthen initiatives to promote cooperation with service providers and e-commerce platforms to adopt new digital currency solutions.

Source: news.bitcoin.com