Lawmakers in Spain are working on proposals that would require individuals holding digital currency to declare their assets and any gains from cryptocurrency trading, according to reports.
Government spokesperson Maria Jesus Montero was quoted by Reuters saying a bill is in the works that would require Spanish taxpayers to submit information to the authorities concerning their dealings in digital currencies.
The proposed bill has been designed to identify tax evasion and fraud, and is aimed at helping authorities gain control over digital currency transactions and trading on digital asset exchanges. While the details remain thin, the proposals will require disclosure of holdings and any profits from cryptocurrency trading activity, Montero said.
The proposals come as the latest step in a campaign to gain more control of digital currency trading from the Ministry of Finance, which announced plans to clamp down on the sector in early 2018. Speaking at the time, Montero said the government was keen to introduce measures supporting “identification of the holders and the balances contributed by these virtual currencies.”
“It is stated as mandatory that people and companies inform the Tax Agency about this operation.”
The measures would cover all Spanish citizens, including those who are ordinarily resident overseas, creating new wide ranging reporting obligations for those engaging in digital currency dealings.
The move comes at a time of increasing regulation for the digital currency sectors, as well as a drive from tax authorities across the world towards great disclosure and transparency in digital currency dealings.
Under current Spanish tax laws, digital currency gains are already required to be subject to tax, similar to other trading and investment profits. The new measures are designed to identify those falling short on meeting these obligations at the moment, which the government hopes will increase tax receipts from digital currency speculators and traders.
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