Spain introduces a new crypto tax regulation requiring residents to declare their cryptocurrency holdings on foreign platforms by March 2024. Spain has introduced new tax regulations requiring residents to declare cryptocurrency holdings on foreign platforms. This directive was issued by the Spanish Tax Administration Agency, Agencia Tributaria, which has created a specific tax form, Form 721, for declaring virtual assets held overseas.  The regulations stipulate that both individual and corporate taxpayers in Spain must report the value of their cryptocurrency holdings on foreign platforms as of Dec. 31. The reporting period for this declaration begins on Jan. 1, 2024, and concludes at the end of March 2024. You might also like: Changpeng Zhao resigns as chair of Binance.US Notably, the declaration requirement applies to those whose cryptocurrency holdings exceed €50,000. For those with crypto assets in self-custodied wallets, the existing wealth tax form, Form 714, is to be used for declaration purposes. This move is part of the Agencia Tributaria’s broader initiative to monitor and tax cryptocurrency assets more effectively. In April 2023, the agency issued 328,000 warnings to residents who failed to declare their crypto assets, reflecting a significant increase from the 150,000 warnings issued in 2022. The escalating number of warnings underscores the agency’s growing focus on ensuring compliance with crypto tax regulations. Read more: Bitrace highlights rising crypto fraud risk as trading platforms introduce web3 wallets

New Spanish legislation is set to require residents holding cryptocurrency assets on foreign platforms to report their holdings by March 31, 2024. The Spanish Tax Administration Agency, commonly referred to as Agencia Tributaria, has introduced Form 721, a tax declaration form designed for virtual assets held abroad. This new regulation was initially announced in the Boletín Oficial del Estado, Spain’s official state gazette, on July 29, 2023. Starting from January 1, 2024, and continuing until the end of March, individuals and businesses are mandated to disclose the amount of funds they have stored in foreign crypto accounts as of December 31, 2023. However, the reporting requirement applies only to individuals with crypto assets valued at over 50,000 euros, which is approximately $55,000. READ MORE: Bankless Co-Founders Propose Separation from BanklessDAO Amid Grant Controversy Those who hold their assets in self-custodied wallets are required to report their holdings using the standard wealth tax Form 714. The Agencia Tributaria has intensified its efforts to ensure compliance among local crypto asset holders. In April 2023, it sent out 328,000 warning notices to individuals who had failed to pay taxes on their crypto holdings for the 2022 fiscal year, representing a 40% increase compared to the previous year’s 150,000 warnings. In contrast, in 2021, there were only 15,000 notifications. Spain is taking proactive steps to establish comprehensive regulations for the cryptocurrency sector. In October, the Spanish Ministry of Economy and Digital Transformation announced that it would implement the Markets in Crypto-Assets Regulation, the European Union’s first comprehensive crypto framework, at the national level in December 2025, six months ahead of the official deadline. Furthermore, in November, Spain’s primary financial regulator, the National Securities Market Commission, initiated its first case against a technology provider for breaching crypto promotion rules. These regulatory developments reflect Spain’s commitment to ensuring the responsible and transparent use of cryptocurrencies within its borders. Discover the Crypto Intelligence Blockchain Council

With growing efforts to regulate the taxation of virtual assets around the world, Spain has introduced new laws requiring residents holding crypto assets on non-Spanish platforms to declare them by March 31, 2024. The Spanish Tax Administration Agency – Agencia Tributaria – unveiled form 721, a dedicated tax declaration form for virtual assets held abroad. Spanish Tax Authorities Set Threshold of $55K The latest announcement, made in the official state gazette on July 29, 2023, mandates the submission period for form 721 declarations from Jan. 1 to the end of March 2024. Both individual and corporate taxpayers are required to disclose the amount of funds stored in their foreign crypto accounts as of Dec. 31, 2023. Notably, only individuals with crypto balances exceeding 50,000 euros (approximately $55,000) are required to declare their foreign holdings. On the other hand, crypto holders using self-custodied wallets must report through the standard wealth tax form 714. The development comes seven months after reports emerged that the Spanish Tax Administration Agency intended to issue 328,000 warning notices to taxpayers in 2022. This marked a 40% increase from 2021, indicating a growing focus on enforcing tax compliance in the crypto sector, with 150,000 warnings issued in 2022 compared to 15,000 in 2021. Meanwhile, Spain’s oldest law enforcement agency  – Guardia Civil – reportedly busted a criminal group in August that was responsible for a massive crypto scam, defrauding over 3,000 people worldwide and embezzling nearly $110 million. Despite increased regulatory scrutiny on the crypto industry in Spain, major exchanges continue to expand in the region. For instance, earlier this year, Crypto.com secured a Virtual Asset Service Provider (VASP) registration from the country’s central bank in June, signaling a continued interest and presence of prominent crypto platforms in the Southwestern European nation. International Push for Tax Compliance Apart from Span, several governments across the world have ramped up efforts to combat the potential underreporting of taxable dealings in the sector. The US’s Internal Revenue Service (IRS) first started issuing letters to taxpayers with crypto transactions in July 2019, aiming to enhance awareness of tax obligations and rectify past errors. Initially, 10,000 notices were planned to be sent by August 2019. The IRS obtained information on tax noncompliance through various means, including John Doe summonses against Coinbase in 2016 and Kraken in 2021. In 2020, additional letters were sent, and apart from educational notices, the IRS issued Notice CP2000, specifying the alleged amount owed to the IRS. More recently, 48 countries issued a joint statement of “global commitment” to combat offshore crypto tax evasion. The UK-led Crypto-Asset Reporting Framework (CARF) was positioned as the OECD’s new tax transparency standard earlier this month, which requires crypto platforms to share taxpayer information with tax authorities, enhancing global enforcement. Effective in 2027, it addresses the current lack of information exchange, ensuring international collaboration for tax compliance. The post Spain’s Tax Watch: Citizens Must Report Overseas Crypto Assets by March 31 appeared first on CryptoPotato.

The post Spain Tightens Grip on Crypto Assets with New Reporting Requirements appeared first on Coinpedia Fintech News In a move to strengthen its oversight over cryptocurrency holdings, Spain has implemented new regulations mandating the declaration of crypto assets held on non-Spanish platforms. This marks a significant step towards enhancing tax compliance and combating potential evasion in the burgeoning crypto space. Mandatory Declaration for Substantial Crypto Holdings Spanish residents who hold crypto assets on platforms outside of Spain must report these holdings by March 31, 2024. This requirement applies to both individuals and corporations. The declaration process will involve utilizing Form 721, a specifically designated form for reporting virtual assets held abroad. The declaration requirement applies to individuals with crypto asset holdings exceeding the equivalent of 50,000 euros, or approximately $55,000. For those storing their crypto assets in self-custodied wallets, reporting will be conducted through the standard wealth tax form 714. Increased Scrutiny of Crypto Tax Compliance The Spanish Tax Administration Agency Agencia Tributaria, has been intensifying its efforts to ensure compliance with crypto asset taxation. In April 2023, the agency issued 328,000 warning notices to individuals who failed to pay taxes on their crypto holdings for the 2022 fiscal year. This represents a substantial 40% increase from the 150,000 warnings issued in 2022 and a stark contrast to the mere 15,000 notifications sent in 2021. Proactive Approach to Crypto Regulation Spain has taken a proactive stance towards regulating the crypto sector, recognizing the transformative potential of blockchain technology while addressing associated risks. In October, the Spanish Ministry of Economy and Digital Transformation announced the anticipated national implementation of the Markets in Crypto-Assets Regulation, the first comprehensive European Union crypto framework, set to take effect in December 2025. In Summary, Spain’s new crypto asset declaration requirements and its proactive approach to crypto regulation demonstrate the country’s determination to foster a responsible and compliant crypto ecosystem. By enhancing tax transparency and addressing regulatory concerns, Spain aims to promote responsible crypto adoption while safeguarding financial stability and investor protection.

Stablecoin issuer Tether has moved to freeze a whopping $225 million believed to belong to an international human trafficking group in Southeast Asia to assist the U.S. Department of Justice. No To Human Trafficking: Freezing USDT Related To ‘Pig Butchering’ Scam Tether revealed on Monday that it has taken measures to block self-custodied digital wallets holding USDT that were linked to a human trafficking syndicate in Southeast Asia in collaboration with the United States Department of Justice (DOJ).  The bad actors were running an expansive “pig butchering” scam. It’s a type of scheme where scammers create an online relationship with unsuspecting individuals and then trick them into sending money for a bogus investment opportunity, much like a farmer fattening up his pigs before taking them to slaughter. Tether revealed that the freezing of $225 million USDT followed a “months-long investigative effort” into the movements of the funds between the firm and crypto exchange OKX using blockchain analysis firm Chainalysis tools. Data from Lookonchain indicates that the $225 million was frozen across 37 wallets. The landmark move marks the biggest-ever freeze of USDT. Tether clarified that the frozen wallets are not directly tied to its customers as they are on the secondary market. “Through proactive engagement with global law enforcement agencies and our commitment to transparency, Tether aims to set a new standard for safety within the crypto space,” Tether CEO Paolo Ardoino posited. “Our recent collaboration with the Department of Justice underscores our dedication to fostering a secure environment.” The company said it would “work quickly” with U.S. authorities to unfreeze any lawful accounts that may have been affected by the operation. Collaborative Efforts With Law Enforcement Tether mints USDT — the industry’s third-biggest crypto after Bitcoin and Ethereum. The company has in the past worked with global law enforcement agencies to track and freeze assets linked to criminal and terrorist activity. Case in point, Tether collaborated with Israel’s National Bureau for Counter Terror Financing (NBCTF) last month to freeze over $873,000 worth of USDT across 32 addresses tied to terrorism and warfare in Israel and Ukraine. Notably, OKX’s Chief Innovation Officer, Jason Lau, also highlighted the exchange’s commitment to collaborating with law enforcement and various industry actors to combat crypto-related crime. “Collaborating with industry stakeholders, including law enforcement agencies, is a key tenet of our approach to building trust and serving the public good as a leader in the crypto industry. At OKX, we will continue to contribute to these initiatives on a proactive basis,” he concluded.