Crypto Disclosure Bill Approved By Spanish Govt

News, Regulation | October 24, 2018 By:

The government of Spain has approved a draft law that will force crypto holders to identify themselves and declare how much cryptocurrency they have in their possession.

María Jesús Montero, the country’s finance minister, said last week that the draft law, which has been approved by the Spanish Council of Ministers, will require Spaniards to clearly identify themselves and their cryptocurrency holdings.

“It is stated as mandatory that people and companies inform the tax agency about this operation,” Montero said.

The draft law will also require Spanish citizens with crypto holdings stored outside of the country to report their investments to the Spanish authorities every year. If the draft becomes law, crypto investments will become subject to Spain’s 720 disclosure form, which requires residents living in the country to record their assets over a specific value that are held in other countries.

According to Bloomberg, taxpayers can face stiff penalties of up to €5,000 ($5,745) for every inaccurate or false detail they report on their earnings. Only residents with certain assets valued at over €50,000 ($57,000) have to fill in a 720 declaration form.

In April of this year, Spain’s Tax Agency, asked 60 financial firms to turn over information on cryptocurrency investors in an effort to crack down on online tax evasion. Requested details include the identities of the businesses’ clients, bank account and credit card information, and the amounts and exchange rates involved in transactions.