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 draft law has been approved by the Spanish government, and will require custodial crypto services to monitor cryptocurrency owners as well as report any large transactions. Should the law go into effect, it will be a significant milestone in the regulation of cryptocurrencies. The law has been introduced by the Ministry of Economy and will apply to banks, credit institutions, and other financial institutions that offer cryptocurrency custodial services.

According to a new draft law, Spain based custodial services will be required to report the ownership of any crypto assets to the country’s tax authorities. This new ruling is scheduled to go into effect on January 1, 2020. According to the country’s Ministry of Finance and Public Function, the new law will require cryptocurrency custodial services to report the identities of their clients and the addresses of their virtual wallets. The exact report format has not yet been disclosed, but it is said to be similar to reports required for Know Your Customer (KYC) purposes.

As many are aware, the Spanish government is currently working on a law that requires all cryptocurrency custodial service providers in the country to report information on the owners of the assets they hold. This is a complex change, as it will require a great deal of effort to implement, and it will likely be a while before it is ready to be implemented. In the meantime, there are some important questions that have surfaced about how this will affect the industry as a whole. One of the most important of these questions, and also one of the most difficult to answer, is whether blockchain technology can be used to prevent this kind of reporting.. Read more about spain cryptocurrency regulation and let us know what you think.

Spain Based Custodial Services to Report Ownership of Crypto Assets, According to New Law Draft A new bill approved today by the Finance Committee of the Spanish Congress would require Spanish custodians to declare ownership of managed cryptocurrencies. The bill, which has been stuck in Congress for some time, is intended to close a loophole that allowed some users to bypass the requirements and still not pay taxes.

Deposit-taking services in Spain must declare ownership of assets

Third party custodians established in Spain would be required to report the availability of funds to their clients and all transactions with them. This is provided for in a new draft law approved Wednesday by the Finance Committee of the Spanish Congress. A bill titled Preventing and Combating Tax Fraud would make it mandatory to report all cryptocurrency funds to these institutions, and would also add individuals or institutions associated with Initial Coin Offerings to this list. Until now, these institutions were not required to report their activities to the tax authorities, and the responsibility lay with the actual owners of the cryptocurrency. Under the current law, users must declare possession of cryptocurrencies worth more than 50 000 euros, as well as all income from trading them. In addition, the law includes cryptocurrency exchanges in this scope, so all cryptocurrency exchanges established in Spain must also report the identity of their customers and the transactions of each to the tax authorities. The bill, which passed with a majority of 21 to 14, will now go to the Senate for approval or rejection. But the changes aren’t just about the regulation of cryptocurrencies. The tax authorities have also set new limits on the amount of cash that Spanish residents may receive as payment, reducing it to €1,000 for entrepreneurs and professionals and €2,500 for others.

Strict position on crypto-currencies

This is yet another new rule that reinforces the already tough stance of the Spanish government and its legislators on cryptocurrency issues. Earlier this month, the Spanish government also signed a royal decree requiring cryptocurrency exchanges and custodians to report all their transactions with cryptocurrencies to share their data with the European Union bloc. The decree also provides for the reporting of suspicious transactions to the authorities. What do you think of the bill passed in Spain? Tell us what you think in the comments section below. Photo credit: Shutterstock, Pixabay, Wiki Commons Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.The Spanish Ministry of Economy and Competitiveness has recently released to the public a new draft regulation for the country’s financial services sector. The regulation requires custodial services to report the ownership of digital assets, including tokens, to the tax authorities. The draft regulation is currently open for public consultation until the 1st of November 2018.. Read more about fail to declare bitcoin taxes in spain and let us know what you think.

spain cryptocurrency regulationspain cryptocurrency taxspanish cryptocurrencybitcoinfail to declare bitcoin taxes in spainis bitcoin taxable in spain,People also search for,Privacy settings,How Search works,Bitcoin,Currency,spain cryptocurrency regulation,spain cryptocurrency tax,spanish cryptocurrency,fail to declare bitcoin taxes in spain,is bitcoin taxable in spain,portugal cryptocurrency tax,do you have to pay tax on cryptocurrency

More Stories
Chainlink Price Prediction 2021 – Will LINK Hit $150 Soon?