The Spanish Tax Service has demanded that cryptocurrency holders disclose information about their digital asset transactions over the past year. Otherwise, traders will face serious fines.
In view of the start of the new fiscal year, the Spanish Tax Service has reminded cryptocurrency holders of their tax liabilities. According to local law, users must pay tax not on the purchase of digital assets, but on their sale.
Traders are required to indicate in their tax return what sales they made using cryptocurrencies during 2020, report the exchange of cryptoassets for fiat or digital currencies, and also purchase any goods and services for cryptocurrencies.
According to local media reports, more than a hundred establishments in Madrid have already started accepting payments in bitcoins. There is an increased interest in the first cryptocurrency in the country, especially in the Spanish capital. However, regulators have called digital assets complex and opaque instruments with high volatility.
The Spanish National Commission for the Securities Market (CNMV) has proposed to ban street advertising of bitcoin in the country and tighten control over the cryptocurrency industry in general. In addition, CNMV and Bank of Spain issued a joint warning about investment risks inherent in cryptocurrencies.
Recall that last year, Spanish lawmakers proposed amendments according to which cryptocurrency firms are required to register with the Central Bank of Spain. This is necessary to comply with the Fifth Anti-Money Laundering Directive of the European Union (AMLD5).
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