Spanish official Tax Authority seeks names and trading data of cryptocurrency traders by demanding details from over 60 financial firms.
The revenue service of the Kingdom of Spain El Confidential reported that an official from the Agencia Estatal de Administración Tributaria (AEAT) said the agency is launching the country’s biggest dragnet yet for potential money laundering and tax evasion through digital currencies.
According to the official, AEAT has requested 60 financial institutes including banks, crypto exchanges, crypto-accepting businesses and securities firms for details about crypto users including their identities, bank details, transactional amounts and payment card information.
The step comes as a part of a wider crackdown by Spanish authorities on online tax evasion which extends to internet-based companies including Airbnb.
Spain’s official tax authority stands among a number of other global counterparts who are planning to collect tax from crypto users. Countries like South Korea, India, U.S.A, Australia, Israel and Thailand are already working on creating tax guidelines for virtual currency holders and traders.
Meanwhile, the ruling government in the country, the People’s party (PP) of Spain is reportedly preparing tax incentives for blockchain companies and startups to lure them into the country acknowledging blockchain technology’s potential in finance, education and health industries. The government is also planning to legislate ICOs in a regulated manner to make Spain an ideal destination for businesses and entrepreneurs to hold their ICOs.
“We want to set up Europe’s safest framework to invest in ICOs,” Teodoro Garcia Egae, a lawmaker from the People’s Party (PP) said earlier this year.
Cryptocurrency adopters that once thrived freely in the environment of anonymity can no longer keep their holdings hidden as global regulators are getting more active on the matter leaving crypto holders no choice than to carry out legal financial activities under the watch of regulators.