Bitcoin [BTC] and other digital currency possessions should be completely disclosed says Spanish Government proposition
The Spanish government instructed all digital money shareholders to reveal their assets irrespective of the investment being within the nation’s territory or outside the country. This announcement was made on October 20th.
Spanish Government Taking Measures To Prevent Fraud
The state decided to take preventive some measures to reduce fraudulent activities in the cryptocurrency industry. The announcement was made on by government spokesperson Isabel Celaa. Celaa also doubles as the minister for education. Although the proposal has not yet been implemented, most individuals feel that these laws should be implemented as quickly as possible to regulate digital assets. Critics feel it is necessary because of the existing problems in the industry. This is the only way that the sector can regain its lost glory.
The proposal shows how this European country is committed to restoring order in the virtual money business. Shareholders will fill a disclosure form where they will give all the particulars of their digital holdings. This disclosure is subject to Spanish form 720 for tax purposes.
Form 720 is an assessment affirmation that reports to the Spanish Tax Organization regarding the totality of possessions that someone owns.
Reports indicate that any individuals who make false declarations might be penalized heavily by the tax authorities. In this case, they can be fined to a tune of 5000 Euros. The penalties are aimed at discouraging people from making false disclosures.
EU Supports The Use Of Cryptocurrencies
Of late, the European Union has been in the headlines of news outlets across the globe for supporting the use of digital money. The organization suggests that cryptocurrencies are a substitute to traditional money. One of the advantages of digital money is that someone can transact without liquid money or the need for credit. Therefore, it decreases the risk of holding a lot of cash.
The EU further stated that central banks are allowed to issue their own digital money to promote the cryptocurrency business.
The organization has received recognition for promoting cryptocurrency trade in Europe. However, the biggest challenge remains how to regulate the market. Most market regulators have not managed to streamline this side of the business. Therefore, market regulation remains to be a work in progress in the industry.
Several European nations have also introduced blockchain association. Some of the countries which comprise this partnership are Spain, Malta, Poland and Ireland among others.