The Spanish government has approved this Tuesday the new draft Law on Prevention and Fight against Tax Fraud. Although the bill focuses on general tax fraud, it also includes cryptocurrencies. One of the first measures of the bill will be the limitation of cash payments to just 1,000 euros instead of the usual 2,500.
This limit will only apply to entrepreneurs and professionals, for small homes, the limit will remain at 2,500 euros.
When it comes to cryptocurrencies, the bill states that there must be greater control over digital assets. The Minister of Finance, María Jesús Montero, stated that "From now on, citizens know that the State will not surrender or seek shortcuts in its fight against tax fraud."
“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 inform is also introduced in the 720 format of declarations of assets and rights abroad, on the possession of virtual currencies abroad ”.
The new law will force the amendment of Law 7/2012 that was introduced to oblige citizens to report on assets and rights located abroad.
Fighting tax fraud is a "top priority," Montero said. The bill remains as a draft for now and new forms and formulas of tax fraud will be fought.
Recently, the G7 declared that it will oppose the launch of Libra, the stablecoin created by Facebook. Central bankers and finance ministers from the United States, Canada, Japan, Germany, France, Italy, and the United Kingdom will stop the launch of global stablecoins, specifically Libra, until all regulations are in place.
"The G7 continues to hold that no global stablecoin project should begin operating until it adequately addresses the relevant legal, regulatory and supervisory requirements through proper design and adhering to applicable standards," the draft stated.