Bitcoin [BTC] and other cryptocurrency holdings need to be fully disclosed says Spanish Government proposal

On 20th October, the Spanish government announced plans for all cryptocurrency investors to disclose their holdings regardless of the investment being within state boundaries or offshore.

The government has decided to take these steps in lieu of several cases of monetary fraudulent activities and plans to put a heavy clamp on it. The plans for the full disclosure was announced by Isabel Celaa, a spokesperson of the Spanish government as well as the Minister of Education and Vocational training. Although the law is still in its proposal stage, several members of the government feel that regulations on the digital assets are the need of the hour.

The details of the proposal point to the European nation taking a serious stance on the virtual currency industry. Investors and holders will be asked to reveal all details of their digital currency holding which will be subject to Spain’s 720 disclosure form. The Form 720 is a tax declaration that reports to the Spanish Tax Agency about all the assets that a user possesses.

Reports have shown that if any holder fails to disclose any detail properly, he or she will be penalized with a hefty fine of 5000 Euros.

The European Union, of which Spain is a part of, had been in the news earlier when it had declared cryptocurrencies can be used as a substitute for money. The EU had said:

“A digital representation of value, not issued by a central bank, credit institution or e-money institution, which in some circumstances can be used as an alternative to money.”

The report issued by the European Union on this topic had further stated that even central banks can issue their own individual cryptocurrency giving a boost to the digital asset industry. The organization had also recognized that although cryptocurrencies can be a viable trade option, regulating them will be the biggest challenge.

Some of the countries in the European Union have also taken the step to establish the European Blockchain Partnership. The countries involved in the partnership are Belgium, Austria, Bulgaria, Czech Republic, Estonia, Finland, France, Germany, Ireland, Latvia, Luxembourg, Lithuania, Netherlands, Malta, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, and the UK.

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