Over the past year or so there’s been a lot of speculation on the future of cryptocurrencies and how governments will try to regulate them. Here are some insights on the current status of cryptocurrencies in Spain.
Regulatory framework for Cryptocurrencies in Spain
The regulatory situation in Spain is clear. There is no regulation on cryptocurrency.
This means that both the issue of ICOs and the purchase or sale of cryptocurrencies do not lead to the benefit of any protection provided by Spanish law, nor by the regulation of any financial product.
This means that no taxes are paid for the purchase and sale of bitcoins or any other kind of cryptocurrency.
Socio-Political and economic situation
The current socio-political situation is one of total bewilderment. The Spanish authorities are unaware of the operation of cryptocurrencies and are trying to find a legal solution.
The Bank of Spain, the National Securities Market Commission (CNMV), and the Central Economic and Fiscal Crime Unit (UDEF), have all warned that the risks of investing in cryptocurrencies are high. While there are risks it’s also true that they are concerned because regulators cannot control the buying and selling of such a product, like they can with traditional currency.
Specifically, the CNMV and the Bank of Spain jointly issued a communication on February 8 in which they warned of the following risks:
- Risk of loss and fraud to cryptocurrencies.
- Extreme volatility problems
- Legal uncertainty because there is no legal protection
Even so, while authorities can inform investors of what may happen, the bigger question is how they intend to regulate cryptocurrency and provide legal certainty. And even if authorities warned of the risk of criminals entering through the cryptocurrency platforms, the economic crisis in Spain is still very serious. As such, the authorities could be quite compromising when it comes to allowing the establishment of cryptocurrency platforms.
Taxation derived from cryptocurrencies in Spain
On one hand of the exchange platform, there is no taxation on the transmission of the virtual currency to an investor.
On the other hand of the INVESTOR, in the event of a profit, it should pay income tax on its personal income tax as a capital gain.
To start the activity in Spain. Probably, the Spanish legislator in his future draft bill will include tax deductions for blockchain companies.
The development of this activity in Spain has a promising future. No one knows how the market will develop but it is known that both the European and Spanish authorities will regulate cryptocurrency.
The virtual currency market will grow in Spain and the rest of Europe. The Spanish institutions are not going to ban cryptocurrency platforms. It is in Spain’s interest that everyone who invests in Spain (even in a decentralized way) should stay here.
Be on the lookout because the community and national regulation of cryptocurrencies may be coming soon. France, Germany and also Spain have requested the regulation of cryptocurrency. This week there is a G20 meeting and it is likely that it will be decided that cryptocurrencies will be regulated. All that remains is for the regulations to be passed on to the Community authorities – and the regulation to be initiated and then applied to each Member State.
We believe that Spanish society will become more aware of the use of cryptocurrencies over the coming year. Cryptocurrencies will probably be used in the future to make any transaction. In the future the euro may even become virtual. it is necessary for people to get used to a new method of payment that may become the money of the future.
What Can Lexidy Do for Me?
Lexidy can help you set up a company and bank account to start your cryptocurrency business.
We can also provide all the necessary information in case the regulation of cryptocurrencies in Spain becomes a reality.
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