Spain Wants to Regulate Cryptocurrencies to Fight Tax Fraud

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Cryptocurrencies expanded all over the world. They allow individuals and companies to send and receive payments in a fast and easy way. However, they have also been used by criminals in order to launder many and avoid paying taxes. This is why the Cabinet Council decided to fight against tax evasion.

Spain Fights Tax Evasion

The number of individuals using Bitcoin has increased over time. And indeed, it is the biggest and most valuable virtual currency in the market. Local authorities are worried about how to control them and regulate them. There are criminals that use them to launder money and avoid paying taxes.

This is why the Cabinet Council in Spain decided to approve a draft law to fight against tax fraud related to virtual currencies. However, this is not the first time that the agency in charge of collecting taxes closely follows individuals and companies using virtual currencies.

Those who own virtual currencies would have to inform all the operations they conduct and the funds they have in the country or abroad. This is in order to track the movement of virtual currencies and avoid fraud.

The Catalonian independentist leader, Carles Puigdemont was allegedly accepting Bitcoin payments in order to gather funds.

Spain has several times tried to regulate the space, although, this task has not been easy. Indeed, the country asked the European Union to propose a regulation for the whole continent. Until now, there are no clear frameworks at the EU level. Each country has decided its own policy towards virtual currencies.

The country has been attracting several companies that are currently operating in different cities such as Barcelona. The crypto-community is also very important in Spain. There are enthusiasts in the most important cities and projects growing all over the country.

Some days ago, we wrote at CoinStaker that a representative from the Bank of Spain said that blockchain technology is able to revolutionize the financial world. José Luis Romero Ugarte, member of the General Directorate of Operations, Markets and Payment Systems at the Bank of Spain, said that the technology could improve different sectors.

Countries such as Japan or Malta have proposed very clear regulations for virtual currencies. This is why now, these two nations, are receiving an important influx of companies that operate worldwide.

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