Spain to tax bitcoin mining companies

Regulation | September 28, 2016 By:

The National Directorate of Taxes of Spain has publicly issued a document that classified cryptocurrency mining operations as taxable economic activities.

The latest notice requires bitcoin and altcoin mining companies – as well as individuals – to register themselves. The move, however credible it may look for legitimising crypto-mining operations, could also affect the profitability of mining operations; thus, forcing miners to quit.

It has not yet been indicated how mining will be taxed, but some experts think that the rate could be between 10 percent and 47 percent of the value of the mined coins.

The Spanish government contests that these regulations are being introduced to curb illegal activities associated with digital currencies. With the said laws yet to be implemented, the country’s cryptocurrency community has also expressed concerns about the effect of taxation on innovation and development of blockchain technology.