Users must disclose crypto holdings inside and outside Spain – Bitcoin News

The Spanish Congress approved the anti-fraud law that was amended by the Senate last month. Spanish citizens must now also provide information about their crypto holdings outside the country. The new law also provides heavy fines for citizens who fail to provide this information to the authorities. In addition, a limit was set on how much money citizens can pay in cash for services.

Anti-Fraud Act tightens crypto supervision Crypto

Spain finally passed its long-debated Anti-Fraud Act, which introduces a series of controls on cryptocurrency and cash. The recently passed law contains two important resolutions and proposed amendments by the Senate. Firstly, Spanish citizens must now inform about the cryptocurrencies they own both inside and outside the country. Second, the law imposes restrictions on cash spending to better control the flow of capital.

The law, introduced in 2018 and tabled until recently, provides stiff fines for citizens who fail to submit their crypto holdings on time. The controversial “720 model” will apply to the setting of fines, although Spain was already criticized in 2015 in the EU for its implementation. According to this model, citizens could pay fines of up to 150% if they do not submit reports within a certain period of time.

However, the EU is expected to table its resolution on the matter on July 15th, which could jeopardize the implementation of the new Spanish law.

Cash transactions are also regulated

These new limits on cash transactions could change the way people do business in Spain. There is now an upper limit of 1,000 euros for services. The law lowers this limit for people outside Spain from 15,000 to 10,000 euros. However, the resolution was also challenged by the European Central Bank. In 2018, then-President of the ECB, Mario Draghi, expressed concerns about the possible negative effects of this measure and called for it to be stopped. The ECB stated:

This restriction makes it difficult to process legitimate transactions with cash as a means of payment and thus endangers the concept of legal tender.

The European directive sets the limit at 10,000 euros, ten times the figure that Spain has now approved. All of these measures had a clear goal: to tighten controls on tax and capital movements in the country. However, this could force citizens to use digital payments to process more transactions. As a result, the law can push them to alternative payment methods such as cryptocurrencies in the long term.

What do you think of the new antitrust law passed by the Spanish Congress? Let us know in the comments section below.

Photo credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer of Liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or approval of any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

source https://bidsfor.me/users-must-disclose-crypto-holdings-inside-and-outside-spain-bitcoin-news/