Bitcoin and the rest of crypto actives are a new topic for the governments, institutions and banks. We should ask ourselves one thing: do these entities know how cryptocurrency and blockchain actually work? If you ask me, they do not.
Crypto investors are growing every day and that just means more money entering the crypto market, and sooner than later, governments worldwide will be creating new declaration rules and probably new taxes if you are taking profit.
Since I'm currently living in Spain, I want to share with you a proposal made by the Spanish government in order to "increase fiscal control over cryptocurrencies."
According to this article, the Spanish state wants to develop a new declaration plan for cryptocurrencies in 2021, taking as a first step, recognize the digital currencies as foreign assets. Also included on an initial phase, the treasury asks > "to obtain information for operations with cryptocurrencies" while > "foresees its incorporation into the model of goods and rights abroad." As you may imagine, this created a wave of controversy on the social media because it's know that a cryptocurrency does not have an actual place of residency, that just apply to the exchanges.
Now being honest, the Spanish government does not possess a good financial reputation, so this was kind of... expected, citizens are already aware that their governors might be not as informed as they should be. Luckily for us fiscal residents, it looks like the UE will not allow these crazy measurements to born and shut the project down by the end of this year. Let's see what happens in the future.
¿What do you think about taxes in general? ¿How you think governments will apply them over the cryptocurrencies in your country? Or if there are already specific measurements and taxes for it, ¿which are?
Thanks for reading, see you in the next one!
-@ThePlayMaker