Treasury to take cryptocurrency in order to settle tax obligations


More financial companies will be given the right to collect taxes on behalf of the government, according to tax amendments unveiled by Spain’s Ministry of Finance.

In an attempt to collect unpaid taxes, the Spanish Ministry of Finance is planning to increase its oversight of cryptocurrency in the nation and perhaps confiscate digital assets holding them.

According to sources, the Spanish Tax Agency is working on changes to the General Tax Law, particularly Article 162, that would enable the ministry headed by María Jesús Montero to seize cryptocurrency assets held by taxpayers with outstanding obligations.

More companies are now able to collect taxes according to a royal order that went into effect on February 1. Up until this point, the Treasury has only accepted reports from depositories, savings and loans, and credit cooperatives.

Additionally, the Treasury intends to take a harder stance against tax avoidance. Its goal is to make financial institutions, such as banks and e-money providers, disclose every single card transaction.

The quick implementation of the modifications has resulted in some issues on the regulatory front. The government is taking a proactive stance by attempting to regulate cryptocurrency via different means.

Six months before the formal date, in December 2025, the Spanish Ministry of Economy and Digital Transformation announced in October that the Markets in Crypto-Assets Regulation (MiCA), the first full EU crypto framework, would enter into effect nationwide.

The tax authorities in Spain need all Spanish citizens to report cryptocurrency holdings held on non-Spanish platforms by the end of next month.

Form 721 declarations may be submitted from January 1, 2024, until March 31, 2024. As of December 31, 2023, taxpayers, whether individuals or corporations, are required to report the total value of their crypto assets held in foreign accounts.

People whose balance sheets include more than 50,000 euros (roughly $54,000) in crypto assets must declare their foreign holdings. A standard wealth tax form 714 is required for those who keep their assets in self-custodied wallets.

Also Read: American Crypto Investors Accumulating Altcoins Due to “Financial Nihilism,” Says Veteran Hedge Fund Manager

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