Spanish government to draft bill requiring crypto investors to disclose assets and earnings

The Spanish government is working on a bill that would require cryptocurrency investors in the country to disclose their holdings and profits.

Government spokeswoman Maria Jesus Montero said after a weekly cabinet meeting that the bill is aimed at catching tax evaders, Reuters reported on Tuesday, though details of the proposed bill remain scarce.

The Spanish Ministry of Finance has been trying to tighten the use of cryptocurrencies as early as 2018. At that time, Montero said that the government wanted to obtain "the identity of the holder and the amount of virtual currency contribution." Montero also pointed out at the time: "It is mandatory for people and companies to notify the tax authorities of this matter," including if the holder is a Spanish resident living abroad.

It is reported that in 2018, the Spanish Ministry of Finance (Hacienda) was responsible for managing 15,000 taxpayers who had conducted cryptocurrency transactions in the previous year. Mainly to prevent tax fraud, this is also part of the annual tax control plan.

The agency's National Fraud Investigation Office (ONIF) selected these 1.5 taxpayers by investigating dozens of companies, banks and intermediaries operating in Spain. The National Tax Administration (AEAT) monitored whether these taxpayers declared their possible capital gains or benefits and investigated whether they used cryptocurrencies to launder money.

In fact, the Spanish Congress unanimously supported a draft legislation favorable to blockchain technology and cryptocurrencies. The draft was agreed upon as early as 2018, calling for a review of the relevant regulations on cryptocurrencies and their surroundings, such as Bitcoin (BTC) and blockchain, and proposed to introduce blockchain technology to the Spanish market through a "controlled testing environment," or commonly known as a "regulatory sandbox."

It is worth noting that the draft also further proposed the need for a "proper mechanism" to ensure that companies apply blockchain technology in accordance with the requirements of the Spanish Ministry of Finance and declare tax refunds in accordance with regulations. At the same time, it also emphasized the potential defects associated with "high-risk" financial assets, claiming that "full publicity of information" is essential to protect investors. (Golden Finance)