The Spanish government wants to control the crypto currencies

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4 min read

In case there was still any doubt that the Spanish Government wants to control bitcoin and other digital cryptos, the Spanish Council of Ministers has approved a draft that confirms it.

Last Tuesday, October 13th, the Spanish Minister of Finance has communicated that the “Preliminary Project of the Law of Measures for the Prevention and Fight against Fiscal Fraud” has been approved.

This measure aims to strengthen the practices and state policies aimed at collecting taxes in the Spanish territory. In order to become a law, this draft must be approved by the Spanish Parliament.

What exactly does the approved draft say?

The draft proposes a set of measures that aim to “prevent tax fraud, money laundering and terrorism” and therefore are directed with special emphasis on cash payments for professionals, the prohibition by law of tax amnesties and the use of bitcoin and other cryptocurrencies.

The Minister of Finance, María Jesús Montero, has expressed that “from this moment on, citizens know that the Spanish State will not give up nor will it look for shortcuts in the fight against tax fraud”.

Will it be “avoiding tax fraud” or adding 800 million Euros more in tax collection, which drives this new and controversial measure?

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They will seek to control crypto-currencies and cash

According to the draft, the Spanish government wants to regulate bitcoin and cryptoactives by obliging Spaniards and/or those residing in Spain to inform the State about the possession of digital assets.

At the same time, they will have to report all the transactions with cryptocurrencies both in Spain and abroad.

And if citizens choose not to report it? My personal opinion is that it will be very difficult for the government to access this data because, although Bitcoin is not completely anonymous, it’s impossible for a government to track all the transactions of Spaniards in Spain or outside of Spain.

Even more so if users choose to buy Bitcoin in cash through totally anonymous services such as Bitnovo coupons to buy cryptos.

Coupons to buy bitcoin and other cryptos, are available in the thousands of associated stores found on this map.

The text of the draft says exactly that Spanish taxpayers will have to provide the State with information regarding the cryptos they keep in their custody. In addition, they will have to report on any type of operation in which they acquire, transmit, exchange, transfer, charge or pay with cryptos.

Cash will also be controlled, and the project proposes to reduce cash payments to professionals. If the draft is approved and becomes law, the maximum amount of payment in paper bills will be reduced from 2,500 euros to only 1,000. And the only ones exempted from this modification will be the “small domestic economies” and transactions between individuals.

What are the implications of these measures for the Spanish economy? Is it part of a strategy in view of the possible launch of the digital euro? Can the government regulate crypto-currencies or is it an absurd measure?

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