The nation’s finance chief also stated that crypto exchanges will be forced to report on their customers’ activities from next year – and warned that similar European Union-wide measures were now in the pipelines.
According to the media outlet La Vanguardia, Spain’s Minister of Finance and Public Function María Jesús Montero stated that government organs were now working on regulations that will “force cryptocurrency holders to submit” an annual declaration of their token purchase and sale operations to the Treasury.
The measures will need to be put to a vote in parliament, but will likely be bundled with other measures, such as laws pertaining to tax rates on electricity providers. They will likely also be tacked onto anti-fraud laws, making their passage through parliament a virtual shoo-in.
The minister claimed that the new crypto regulations would likely come into force on January 1, 2023.
Montero further stated that Spain was acting in “anticipation” of regulations that would soon “be carried out throughout the European Union,” adding that other countries were “already working along the same lines.”
Montero was quoted as calling crypto “a new [form of] currency” that the government “must be able to regulate” to ensure that “no type of fraud or undesirable effects” impacted the Spanish economy.
The finance chief went on to add that the regulations would also seek to force crypto “platforms and companies that facilitate the purchase or exchange of cryptocurrencies” to “submit an annual document” containing “information on crypto movements on their platforms.” Exchanges will also be obliged to provide details on the owners of all the coins on their platforms.
The Treasury will be hoping to avoid another embarrassment on the crypto tax declaration front, however. Earlier this year, tax authorities and government bodies, including the Ministry of Finance, were forced into a humiliating climbdown after an effort to make Spaniards who hold coins on overseas platforms declare their holdings ran into difficulties.
The tax body had previously told citizens who hold tokens on overseas platforms that they should disclose their crypto holdings on annual overseas assets tax declarations in March (at the end of FY2021).
The body had told crypto owners with coins held on non-Spanish platforms to add details of their holdings to an assets declaration form. But this drive was blighted by apparent clerical errors: crypto holders complained that there were no fields on the aforementioned form for crypto holdings. This eventually forced the Ministry of Finance to make an eleventh-hour U-turn and tell crypto holders they did not need to submit details of their overseas crypto holdings after all.