The Spanish Council of Ministers approved, in a first round, a draft law that requires a series of changes to the tax laws that apply to the Cryptocurrency sector. This, as part of the process of transposing the country’s laws to the new European Union (EU) directives.
The proposed law, which establishes reporting obligations on cryptocurrencies located abroad, relates to DAC8 regulations of the EUalso known as the Eighth Directive on Administrative Cooperation. It imposes on exchanges, wallet providers, brokers and other cryptocurrency companies, the obligation to declare data about its customers.
In this way, the draft law raises Bitcoin-hacienda-dac8/#google_vignette” target=”_blank” rel=”noreferrer noopener”>the implementation of various modifications the General Tax Law (LGT) and the General Regulation of tax management and inspection actions and procedures, which contain the current regulations that, in terms of tax collection, apply to the bitcoin (BTC) ecosystem in Spain.
The idea is also to draft a royal decree “to regulate the obligation to identify the tax residence of cryptoasset users and to report their transactions. This will represent an important step forward in the field of international exchange of tax information,” points out a statement from the Ministry of Finance.
Among the modifications proposed by the draft law, the express inclusion of cryptocurrencies stands out. among the assets subject to seizuretogether with the assets and rights located in payment and electronic money entities.
“A measure that responds to the evolution of banking and payment services and payment methods, including crypto-asset registration technologies,” the Ministry said.
In this regard, the expert in cryptoasset taxation, José Antonio Bravo, clarifies that, with the laws in force, currently It is now possible for the Treasury to seize funds in cryptocurrencies that are effectively deposited with a service provider.
«What the DAC8 transposition does is to reaffirm its seizable nature without the provider being able to refuse because it is not within the legal assumptions,” Bravo adds, while the lawyer Cristina Carrascosa assures that the new law will allow make legal adjustments to seizure procedures.
At this point, Bravo recalls that all these laws apply to crypto assets that are deposited in centralized exchangessome of which “could even suffer a devaluation by administrative or judicial order.” Something that does not apply to cryptocurrencies in self-custody, which “will continue to be unseizable, because limitations on their ownership cannot be enforced.”
Incorrect news:
The Treasury could already seize cryptocurrency funds that are effectively deposited with a service provider. What the transposition of DAC8 does is reaffirm their seizable nature without the provider being able to refuse because it is not within the…
— Jose Antonio Bravo Mateu (@jabravo) September 18, 2024
As reported by CriptoNoticias, the DAC8 was approved by the European Parliament in September 2023. Its aim is to “restrict anonymity in cryptocurrency transactions and prevent users from evading tax authorities.”
The DAC8 will come into force in January 2026so the countries of the European bloc They have until December 31, 2025 to adapt its internal rules and regulations to the provisions of the regulation.
The regulations follow the guidelines established in the Cryptoasset Markets Regulation, which was approved in April 2023. These regulations will come into force in the EU from the end of 2024.
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