Cryptocurrencies continue to flourish and take over the globe with its charm, however, the illicit activities, as well as tax evasions, have also started to surge. While the crypto market has its own upside, the downside continues to haunt the industry. With tax evasions on the rise, governments of several countries have been making amendments to their existing laws or even coming up with new ones. Spain is the latest country to join the list with its recent disclosure.
Spain Plans Ahead For A Crack Down
With an intention of complying with the demands of the EU, Spain has been working towards the same. The Spanish government recently revealed that it was formulating a bill that would mandate crypto holders to unveil both their holdings as well as gains procured through cryptocurrencies. The government’s spokeswoman, Maria Jesus Montero further suggested that the latest bill was on par with the government’s intention of busting a tax fraud.
The draft for the “anti-fraud law” put forth by the Ministry of Finance was reportedly given a green light by the government. The spokeswoman further added,
“[..]the identification of the holders and the balances that these virtual currencies contribute. It is considered compulsory for people and companies to inform the Tax Agency about this operation.”
While crypto has been upholding decentralization, the latest obligation by the Spanish government could steer away from the former. Furthermore, citizens of the country with currency abroad would also be required to report their holdings.
Back in June, the government commenced its operations pertaining to anti-money laundering which required crypto companies to engage in registration. The EU has been laying out several regulations pertaining to cryptocurrencies. More recently, the Union announced that the European Central Bank was the only one allowed to issue currencies. Platforms like Facebook should not be given the leeway to issue any form of currency.