Spanish authorities plan to force hodlers to reveal the amount held in their portfolios

With the cryptocurrency market continually expanding, authorities in countries around the world are introducing various rules and guidelines to regulate digital assets.

Know more: Project of deputy wants to prevent the government from having access to indebted cryptoassets

According to a report by the Catalan newspaper ARApublished on June 22, the action by the Ministry of Finance would be a attempt to increase control of the new, largely unregulated asset class.

The report cites the Ministry’s proposal dated June 17, which lists a set of new rules to be applied to cryptocurrency holders, custodians and exchanges, imposing obligations such as declaring your assets in digital currency and their value in euros to Spanish tax regulators.

The basis of this bill is the result of a joint effort by the Ministry of Finance and the Ministry of Economy of the country, and will require crypto owners to declare whether their holdings are held abroad or not.

In addition to informing the values, taxpayers will have to clarify all your crypto transactions with details including their date, type, amount and value in euros, addresses of source and destination walletsbetween others.

The justification came with a quote from the Minister of Finance of Spain, María Jesús Montero, that ministries “should be able to regulate cryptocurrencies so that there is no fraud or unwanted effects on the economy.”

If the proposal is adopted, it will start on January 1, 2023which means it will already be related to this year’s holdings and transactions.

That said, the proposal establishes that the rule on the declaration will only apply to taxpayers who hold at least €50,000 of digital assets from December 31st.

In Brazilfor example, any crypto asset with a purchase value equal to or greater than BRL 5 thousand reais must be declared since 2019, being the minimum amount for charging Income Tax on crypto assets of $35 thousand reais per month.

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