As part of efforts to tackle financial crime, Spain crypto holders would be required to disclose their crypto holdings and gains made from these assets. The government are working on a bill to legalize this process.
The attempt by the government to capture Spain crypto holders asset is in the wake of a rise in cybercrime globally. Spanish government now wants to focus on the crypto industry.
Maria Jesus Montero, the government’s spokesperson said that the bill is also to nab tax evaders and prevent tax fraud. Also, Spain is working on full information collection towards complying with the European Union’s Fifth Anti-Money Laundering Directive (AMLD5).
The EU law mandates that crypto firms and asset custodians keep information about their customers and their transactions. By collecting information from crypto holders directly, the government hopes to ensure that it keeps a tight leash on its crypto industry.
Previous attempt to noose on Spain crypto holders
In 2018, the Ministry of Finance in Spain tried to tighten regulations around Bitcoin and other cryptocurrencies. The requirement then also was for Spain crypto holders and crypto firms to declare their operations to the Tax Agency. This included Spanish citizens living outside the country.
The ministry stated that it was mandatory that people and companies inform the Tax Agency about this operation.
However, Spain would not mark as the only country asking citizens for more information about their crypto earnings. In September, New Zealand Inland Revenue Department (IRD) asked local businesses, to disclose information about their customers’ crypto holdings.
It was part of the IRD way of getting a better hold of the crypto space in the country and develop a progressive tax framework for the assets. The move was criticized by many in the country’s crypto community.
Government policy against crypto belief
Primarily, everything involving cryptocurrencies are to be private, government and authorities demand to make crypto earnings public are against the belief of crypto holders.
Janine Grainger, Easy crypto co-founder, a crypto firm in New Zealand said that the industry has always focused on privacy. Government demands are vague according to Grainger.
According to her, the point of privacy is not to hide something like the government intends to uncover. Privacy is to ensure a fair, open, and free society. However, despite these conflicting opinions, crypto holders have to comply with the law.
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