Regulators are now taking a closer look at cryptos since the crypto market gained mainstream attention in 2017. In fact, Bitcoin was even able to hit an all-time high in December to almost $20,000. And since then, many regulators have tried to catch up with blockchain technology. And one of the latest countries that now try to take a closer look at their rules is Spain.
Spain’s official tax agency is now looking to get user details including names and trading data of crypto adopters from over 60 companies. Why get all the necessary information? This will be crucial especially in evaluating how cryptocurrencies are used especially by whom.
Basically, Spain wants to know who is using cryptocurrencies. Included in the 60 companies are 16 large banks. Banks, intermediaries, exchanges, and even ATMs that accept crypto payments are going to be scrutinized. The primary concern that Spanish authorities have is to look into cases of both money laundering and tax evasion.
According to the Agencia Estatal de Administracion Tributaria (AEAT), the revenue service of Spain, it has reportedly requested 60 companies to gather all details that will identify their crypto clients. This will include bank details, payment card information, and even transactional amounts.
This isn’t the only industry that has been affected by Spain’s recent move towards stricter tax policies. In fact, Spanish authorities are already cracking down on platforms such as Airbnb.
Still Inviting Crypto Investors?
Spain is just one of the many agencies worldwide that have become interested in cryptos. In March, Spain’s tax agency already addressed Bitcoin even linking cryptocurrencies to crime. And after which, they have called for an increased supervision of the industry.
However, despite this recent move by Spain, the country is still trying to get crypto startups and companies to invest in the country. In fact, they have added the possibility of legislating initial coin offerings or ICOS in a regular manner. According to lawmaker Teodoro Garcia Egae of People’s Party, “we want to set up Europe’s safest framework to invest in ICOs”.
It isn’t surprising though that Spain decided to take strict measures towards those that make use of cryptocurrencies. The likes of Australia, India, and the US are among countries that have worked towards having tax guidelines for cryptocurrencies.
And if you will look at the numbers, despite the rocky start for the crypto market for 2018, recent market improvement of more than $800 million could’ve been enough to catch the attention of tax agencies.
No Orders Yet
Up to this point, there are no exact spoken orders yet regarding the issue. However, there are already reports wherein orders were already given to the banks. If this is actually true, there is a chance that some of the investors are even facing trouble. It is even possible that there is a possible angle of tax evasion. It remains to be seen what Spanish authorities are planning to do with the information that they are going to get from banks and companies involved in crypto.