Users will have to disclose crypto holdings inside and outside Spain – Bitcoin News

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The Spanish Congress approved the anti-fraud law which was amended last month by the Senate. Spanish citizens must now report their crypto holdings even outside the country. The new law also provides for severe fines for citizens who do not share this information with the authorities. A limit on the amount that citizens can pay in cash for services has also been established.

Anti-fraud law strengthens crypto oversight

Spain finally approved its long-discussed anti-fraud law that establishes a series of checks on cryptocurrency and cash. The recently adopted law includes two important resolutions and amendments proposed by the Senate. First, Spanish citizens must now inform about the cryptocurrencies they hold inside and outside the country. Second, the law sets limits on cash spending in order to better control the movement of capital.

The law, introduced in 2018 and filed until recently, provides for severe fines for citizens who fail to present their crypto holdings on time. The controversial “720 model” will apply to setting the amount of fines, although Spain was criticized in the EU for its implementation in 2015. Based on this model, citizens could pay fines. fines of up to 150% if they fail to report. within a specified time.

However, the EU should gift its resolution on the issue on July 15, which could compromise the implementation of the new Spanish law.

Cash transactions also regulated

These new limits for cash transactions could change the way citizens do business in Spain. From now on, a limit of 1000 euros will apply for services provided by professionals. The law reduces this limit from 15,000 to 10,000 euros for people outside Spain. However, the resolution was also challenged by the European Central Bank. In 2018, then President of the ECB, Mario Draghi, was worried about the potential negative effects of this measure and demanded that it be stopped. The ECB said:

This limitation makes it difficult to liquidate legitimate transactions using cash as a means of payment, thus jeopardizing the notion of legal tender.

The European directive sets the limit at 10,000 euros, ten times the number Spain has now approved. All these measures have been put in place to follow a clear objective: to strengthen controls on tax and capital movements in the country. But it could force citizens to use digital payments to settle more transactions. Therefore, the law may also lead them in the long run to more alternative payment methods such as cryptocurrencies.

What do you think of the new antitrust law approved by the Spanish Congress? Tell us in the comments section below.

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