In previous articles, we have talked about the taxation of cryptocurrencies and the Personal Income Tax and Cryptocurrencies. Still, we also want to focus on cryptocurrencies about money laundering so that you know the implications that may exist.

First of all, we will clarify the crime of money laundering so that you understand exactly what it consists of and how it is regulated.

What is a money-laundering crime?

The crime of money laundering is regulated in article 301 of the Penal Code, which establishes that whoever acquires, possesses, converts or transmits goods, knowing that they have their origin in criminal activity, will be punished with a prison sentence of 6 months to 6 years and a fine of triple the value of the goods.

Therefore, the objective is to prevent certain assets such as money, obtained illegally, from being transformed into money that appears to be obtained legally.

The relationship of cryptocurrencies with money laundering

As you already know, cryptocurrencies such as Bitcoin are used as an investment and as a means of payment and one of their main characteristics is that they are not controlled by banks (which are the main providers of information when it comes to detecting money laundering crimes ).

In addition to the above, cryptocurrencies use technology to guarantee security through Blockchain encryption, so it is not possible to know the origin of the transactions unless a very advanced technology is used.

Therefore, Blockchain technology and the lack of control by banks have meant that criminals use cryptocurrencies to launder money obtained with the commission of crimes (drug or human trafficking, among others).

The measures of countries in relation to cryptocurrencies

All of the above has alerted various countries to start taking measures against tax evasion and money laundering with the use of cryptocurrencies, for example, in Japan bitcoin has been established as legal tender and in States United, it seems that steps are also being taken in this regard.

The OECD (Organization for Economic Cooperation and Development) is preparing a report to establish a common taxation model for cryptocurrencies and has raised concerns about criminal practices such as tax evasion and money laundering.

In the case of Spain, money laundering is regulated in Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism, which establishes that the obliged subjects will examine with special attention any fact or operation that may be related to money laundering. In particular, transactions that show signs of simulation of fraud will be carefully examined.

The Ministry of Economic Affairs and Digital Transformation has published a preliminary draft that aims to modify the current Law 10/2010, of April 28, on the prevention of money laundering and the financing of terrorism, including new obligated subjects, including all those that provide virtual currency exchange services for legal tender, and even those that are exclusively dedicated to the exchange between virtual currencies, as well as virtual currency custody service providers.

The foregoing was completed by the Regulation that develops the Money Laundering Law, which establishes the obligation to identify the natural and legal persons involved in operations with a value equal to or greater than 1,000 euros. In addition, in relation to transfers or the sending of money, the identity will be identified or verified in any case.

Finally, the Council of Ministers has approved the Draft Law on Prevention and Fight Against Tax Fraud, which will now begin its parliamentary process. The Bill contains changes in various tax regulations and figures and with respect to cryptocurrencies, 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.

As you have seen, little by little, measures are being taken to control the misuse or illegal use of cryptocurrencies, so that transactions are safe and transparent.