Categories: Market

Spain passes new law on controversial claims on cryptocurrencies abroad

The Spanish Parliament has passed a controversial new law that will force Spaniards to declare crypto holdings abroad – as part of an effort to eradicate crypto scams.

Spain Adopts New Law On Controversial Claims Of Foreign Crypto Holders

Spain Adopts New Law On Controversial Claims Of Foreign Crypto Holders

The new law introducing cryptocurrencies into the Modelo 720 system has many shortcomings, has cleared the last hurdle and received the approval of the Spanish parliament, said the Ministry of Finance.

The Modelo 720 system, previously criticized by some others in the EU, is forcing Spaniards to declare foreign bank accounts and real estate, as well as other assets such as stocks. But cryptocurrencies have now been included in the same system. Spanish legal experts have been trying for more than six years to challenge the legality of the Modelo 720 in European courts – but to no avail.

Failure to report cryptocurrencies held overseas will result in a flat-rate fine of $ 5,900 per violation under the provisions of the new law. This means that fines can accumulate indefinitely if Spanish nationals hold cryptocurrencies on multiple platforms abroad but do not declare them on annual forms that must be submitted to the agency.

In the meantime, an expert has tried to solve the riddle of how the Spanish legal system correctly assesses cryptocurrencies. According to an article published by El Pais and written by the head of the law firm LaBE Abogados, Daniel Burón, June 20, 2019, the Supreme Court ruling in a case involving Bitcoin (BTC) has a serious legal precedent in Spain.

In this case, the incumbent judge ruled that “cryptocurrency is not considered cryptocurrency”.

The court also ruled that “Bitcoin is nothing more than a unit of account from the network of the same name”.

And the judge ruled that the Bitcoin network uses “a verified network of computers” and that “Bitcoin in this way is nothing more than an intangible inheritance”.

Burón added that this last fact is vital in the legal process – and it means that at the time of investment (in the case of a fraud test), Spanish courts will certainly have to set BTC or altcoin prices to calculate the island’s size and loss.

He concluded that the regulatory requirements for cryptocurrencies and payments set out in a 2011 law “do not apply to cryptocurrency miners”.

Join our Facebook group and Telegram group Coincu News to chat with more than 10,000 other people and share information about the crypto currency market.

Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice. Your money, the choice is yours.

CoinX

Recent Posts

Gate.io Shatters Records in Total Trading Volume in Q3 2024, with Its User Base Surpassing 17 Million

In the third quarter of 2024, despite a challenging market environment, Gate.io maintained strong growth…

1 hour ago

MEXC Champions the Future of Crypto Content Creation at CCCC

MEXC is proud to partner with the inaugural Crypto Content Creator Campus CCCC event, taking…

1 hour ago

Dtec Announces Global Partnership with DİZAYNVIP to Elevate AI-Driven Mobility Design  

Dtec and DİZAYNVIP partner to merge AI technology with luxury vehicle design, revolutionizing smart mobility…

2 hours ago

Bitcoin Spot ETF Outflows Reach Second Highest in History

Bitcoin Spot ETF Outflows hit $541M on November 4, the second-highest single-day outflow in history.…

7 hours ago

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

9 hours ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

11 hours ago

This website uses cookies.