Spanish digital currency users can keep their bank details cryptic for now

SPAIN’S Treasury has delayed the implementation of legislation requiring taxpayers to declare all cryptocurrency information. The decision was announced on Friday, December 30 and means virtual currencies will not be treated the same as traditional currency until at least 2024.

As well as technological difficulties, the reasons for the 11^th hour decision include a disagreement between the national tax agency and the State Council over the format of declarations. Spain’s tax agency is in favour of collating as much data as possible from taxpayers, whereas the State Council is concerned about potential data protection issues.

The tax codes that are under review and set to be amended from 2024 include 172, 173 and 721, which could change to require taxpayers to declare earnings in cryptocurrencies abroad and domestically.

Currently, data is only required on cryptocurrencies when it is used as a currency for domestic transactions. Taxpayers also do not currently have to declare the purchase of cryptocurrency. However, more stringent regulations apply to those whose assets are worth more than €2 million.