The Spanish authorities want to know all crypto holders

19.10.2020

0

According to Reuters' reports, the Spanish authorities are preparing a law that will force the owners of the cryptocurrencies to disclose their funds. In addition, they would have to report on all profits made from the digital assets. 

The Spanish authorities' proposals are part of a broader strategy to eliminate tax fraud. Radical regulations are to cover not only cryptocurrencies. Under the new rules, it would be illegal for cash transactions over 1000 euros (the current limit was 2500 euros).

The "Draft law on measures to prevent and combat tax fraud" received the green light from the Spanish Council of Ministers. If it goes through further proceedings, the owners of the cryptocurrencies will be charged with the obligation to report their investments accurately. According to the proposed law, Spanish citizens would report all cryptocurrencies owned or used, even if they have them or use them outside the country.

The Spanish tax agency AEAT monitors the crypto transactions of residents in order to prevent fraud and money laundering. Formally, this has been going on since 2018, but the office has limited scope for action.

Plans to seal the Spanish tax system came a few months after the start of the implementation of national 5AMLD rules. The Fifth European Union Directive concerns the prevention of money laundering and terrorist financing and therefore also covers the crypto exchange. In order to comply with the 5AMDL requirements, they must comply with the strict KYC (Know Your Customer) rules.

The law, which has been in force since June, to adapt the Spanish law to the 5AMLD rules, requires the crypto exchange, as well as the providers of electronic wallets or fiduciary services, to register with the central bank. In addition, the platforms for the exchange of digital assets must prove that they comply with the rules on customer verification.

Karol Kiełtyka

19.10.2020 18:30

Accepted.