Breaking: Spain will force you to pay taxes on your crypto holdings

• The government of Spain approved a draft law to fight fraud this Tuesday.
• There will be a higher control over cryptocurrencies in general among other measures.

The government of Spain has approved a new law that limits the payment in cash up to only 1,000 euros instead of 2,500. Additionally, citizens that own cryptocurrencies and operates them in Spain will have the obligation to inform the government about their holdings. As long as it affects Spanish taxpayers, even operations that are not inside the country will need to be reported.

In this way, information on the balances and holders of the coins in custody will be required. In addition, the obligation to provide information on the operations of acquisition, transmission, exchange, transfer, collections and payments, with cryptocurrencies is established . The obligation to report is also introduced in the 720 form of declarations of assets and rights abroad, on the possession of virtual currencies abroad.

The Minister of Finance, Maria Jesus Montero has stated that fighting against tax fraud is an 'absolute priority' and that the Government plans to use 'zero-tolerance against any fraudulent practice'. 

Governments around the world are cracking down on crypto

Central bank governors from the 20 world's largest economies are planning to gain control over your cryptocurrency holdings. Although it seems that almost everyone agrees that digital payments are a positive development, authorities still have many concerns regarding digital assets. The new draft about CBDCs stated:

The G7 continues to maintain that no global stablecoin project should begin operation until it adequately addresses relevant legal, regulatory, and oversight requirements through appropriate design and by adhering to applicable standards

The newest G7 draft also stated that Facebooks' Libra can't happen unless it's fully regulated. The recently released draft showed that the plan is to oppose the launch of Libra because there is a need to adequately address all the legal, and regulatory requirements first.