Spain: Financial Watchdog Intensifies Efforts to Make Cryptocurrency Holders Pay Tax
It may soon no longer be business as usual for bitcoin (BTC) and altcoins investors in Spain as the nation’s tax authority, the Agencia Estatal de Administracion Tributaria (AEAT), has reportedly identified at least 15,000 distributed ledger technology (DLT) based virtual currency holders and is now set to make them pay taxes, reported Finance Magnates on November 20, 2018.
No Hiding Place for Hodlers
As reported by BTCManager earlier in April 2018, Spanish tax authority, the Agencia Tributaria requested for the names and trading data of cryptocurrency traders from 60 crypto-related firms in the region, including 16 commercial banks, crypto exchanges and Bitcoin Teller Machine (BTM) operators, to make it easier for the agency to fight tax evasion.
Now, it appears the agency has achieved a significant victory in its war against digital assets tax evasion, as it has succeeded in getting details of 15,000 taxpayers who hold cryptos in the state.
Since the price of bitcoin and other digital assets hit the moon last year, bringing the nascent digital asset class into the consciousness of the entire world, regulators across the globe have put efforts in top gear to identify virtual currency investors and make them pay capital gains taxes.
In October 2018, BTCManager reported that the Spanish government had approved a draft regulation targeted at making it compulsory for crypto investors with a minimum of 50,000 euros ($57,000) in their cryptocurrency wallets to identify themselves and declare their exact holdings formally.
Tax Authorities Gradually Winning the Battle Against Hodlers?
Although it is impossible to say that regulators and tax authorities are winning the battle against crypto tax evaders, the fact remains that they are making significant progress with each passing day, as financial watchdogs are now pressurizing bitcoin-linked businesses to get all relevant information needed to make crypto holders pay tax.
In March reports emerged that Coinbase crypto exchange was preparing to hand over the personal information of 13,000 of its customers to the U.S Internal Revenue Service (IRS ) after being mandated by a California Federal Court to do so.
In related news, in May 2018, BTCManager informed that Bitfinex had made it clear to some of its users that it needed their tax information on the British Virgin Island government’s order, who will then share the data with tax authorities of the traders’ countries of residence for proper taxation.