Kryptonie operators in the new law on prevention and fight against tax fraud



The Government is working on a draft law to increase controls on owners of cryptomoney

Cryptomoney is a digital medium of exchange that has gained great popularity in recent years. Both Bitcoin and Ethereum have become commonplace currencies in the digital age, but the fact is that the market for investment in cryptomoney is still expanding and there is more and more variety in digital portfolios. In Spain alone there are more than 75 organizations listed in the "Crypto Business Guide in Spain 2021", so it was to be expected that sooner or later the government would want to enter into regulating this sector.The presence of these new virtual currencies in the Spanish reality has led the Government to adopt some control measures over the crypto operators in order to prevent money laundering and tax fraud.

On 12 June the Ministry of Economic Affairs and Digital Transformation began the process of public hearing of the draft law that regulates them, so everything seems to point to the fact that controls on this type of currency will be implemented soon.According to the draft law that is being processed, all suppliers in this sector would become part of a single registry subject to the control and supervision of the administration. The identification of the holders who operate with this type of digital currency is key in the new conception of crypto-currency, so a good part of the measures implemented will consist of facilitating a greater flow of information to the public authorities.Owners of cryptomoney who wish to operate with it must request their inclusion in the unique identification system before establishing business relations with other entities. Likewise, the possession and use of digital currency must be declared to the Treasury in all cases and without any kind of limit.

It will be compulsory to notify the tax authorities of any operations that may have been carried out using this currency, regardless of the amount involved.The Government's intention to implement such measures will result in greater tax control of tax able events that may affect transactions carried out with crypto-currency. In recent years, the fight against tax fraud has become a major issue on the public agenda of the legislator and this is precisely where the new obligations to inform the tax authorities come in.Given that the draft law has already been approved by Parliament and that it has already been submitted to the mandatory report of the Commission for the Prevention of Money Laundering and Monetary Offences, the entry into force of these new measures is expected to take place in the second half of this year, 2021 .