The crypto sector in Spain is to see tough times ahead as the Spanish government will force crypto holders to declare their digital assets. Crypto exchanges will have to report their customers’ activities from 2023. The Spanish Ministry of Treasury wants the crypto holders to clarify whether they are holding the digital assets abroad or not. This is said to be an attempt to increase control of the largely unregulated new asset care.
A report in Spain’s local media outlet highlighted the Ministry of Treasury’s draft proposal dating from June 17. It lists a set of new rules that will apply to crypto holders, custodians and exchanges. The new law enforces obligations like declaring one’s digital currency holdings and their value in euros to Spain’s tax regulators. Maria Jesus Montero, Spain’s Minister of Finance and Public Function, said the Spanish authorities are working on regulations that will force cryptocurrency holders to submit an annual declaration of the cryptocurrency or token purchase and sale operations to the Treasury.
However, these measures need to be put to vote in parliament. It will likely be bundled with other measures, such as laws pertaining to tax rates on electricity providers. It would also be tacked onto anti-fraud laws. Montero highlighted that the new law would likely come into force on January 2023. He said Spain was acting in anticipation of regulations that would be carried out throughout the European Union. The minister claims other countries are already working on similar lines.
Montero described cryptocurrency as a “new form of currency” that governments must be able to regulate to ensure no fraud or undesirable effects hit the Spanish economy. He said regulations would seek to force crypto platforms and companies that facilitate the purchase or exchange of cryptocurrencies to submit an annual document. It will contain information on crypto movements on their respective platforms.