{"id":18475,"date":"2024-03-20T17:47:41","date_gmt":"2024-03-20T16:47:41","guid":{"rendered":"https:\/\/etl-ilia.es\/general\/expansion-la-regularizacion-de-las-criptomonedas-del-auge-a-la-normativa\/"},"modified":"2024-07-19T12:05:38","modified_gmt":"2024-07-19T10:05:38","slug":"expansion-regularization-cryptocurrencie-boom-regulation","status":"publish","type":"post","link":"https:\/\/etl-ilia.es\/en\/tax-advice-blog\/expansion-regularization-cryptocurrencie-boom-regulation\/","title":{"rendered":"Expansion: The regularization of cryptocurrencies, from boom to regulation"},"content":{"rendered":"

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Leer en el diario Expansi\u00f3n<\/span><\/a><\/div>
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Article transcript<\/strong><\/div><\/div>

After what seems like the end of the crypto winter that began at the end of 2021, Bitcoin’s boom in recent months, breaking historical price values \u200b\u200bbefore its imminent halving scheduled for April, reopens the debate about cryptocurrencies and once again captures investors’ interest.<\/p>\n

What has changed compared to the last high point in 2021? The truth is that in recent times, administrations have put their foot on the accelerator when it comes to regulating the sector.<\/p>\n

Within the European framework, the Cryptoasset Markets Regulation (MiCA) was approved last April 2023 by the European Parliament, which aims to provide a clear regulatory framework that gives confidence to companies in the sector and establishes standards to prevent abuses and whose entry into application in Spain is scheduled for December 2025.<\/p>\n

In Spain, the National Securities Market Commission (CNMV) and the Bank of Spain have made significant progress in the supervision and compliance with regulations related to crypto assets, including the creation of a registry of virtual currency operators. The Tax Agency has also stepped up, deploying new information obligations (forms 172, 173 and 721) that will allow more information to be collected on the transactions carried out in the sector, providing a more transparent and accountable system.<\/p>\n

As far as taxpayers are concerned, the truth is that in many cases, scrupulously complying with existing regulations and new reporting obligations can be a daunting task. The cost-benefit analysis often suggests that it’s more beneficial to not comply, making it a real odyssey for many.<\/p>\n

Indeed, there are still many gaps in the information presented by the crypto asset management and\/or holding platforms. Hence, the effort of an average investor to obtain reliable data on their balances, transactions, profits or losses to complete Form 721 or the income and assets declaration represents a considerable investment of time and resources.<\/p>\n

It is therefore necessary that aware of the problem, the Administration makes an effort to simplify the information obligations about the possession of virtual currencies, especially if the aim is to surface assets that, traditionally, have remained under the radar of the Administration. Thus, for example, the format, content and presentation of model 721 turns it into a real obstacle course for the taxpayer that has led more than one to move their assets to other forms of custody that escape the scope of the declaration of the model. And, therefore, outside administrative control.<\/p>\n

It is strongly recommended that holders of crypto assets operate with platforms registered in Spain. These platforms typically provide the necessary information to comply with the treasury, making it easier for asset holders to meet their tax obligations.<\/p>\n

Xavier Vilalta
\nDirector of the tax department of ETL ILIA
\nx.vilalta@etl-ilia.es<\/p>\n<\/div><\/div><\/div><\/div><\/div>