Spanish crypto investors may soon be required by law to disclose their holdings along with any profit gained following newly passed regulation.
According to Maria Jesus Montero, the Spanish minister of finance who unveiled the news on Tuesday, crypto disclosure comes as part of a larger legislative package trained at tackling tax fraud and evasion.
First proposed back in 2018, the new legislation would require all Spanish citizens to identify themselves and their current cryptocurrency holdings every year - inclusive of funds held outside of the country.
“It is stated as mandatory that people and companies inform the Tax Agency about this operation,” Montero said at the time.
Should the bill pass, any crypto investment will be subject to the Spanish tax form 720, a rigorous tax declaration probe devised to battle tax evasion - specifically targeting assets held overseas.
Under the purview of the 720 model, crypto taxpayers could meet stern fines of up to €5,000 ($5,868) for any inaccuracy reported on their holdings or profit.
Today news follows recent reports that all 350 members of Spain's Congress of Deputies are now de facto bitcoin holders. Members were sent the bitcoin equivalent of 1 euro (roughly 0.0001 BTC) as part of an educational push and to heighten awareness around cryptocurrencies.