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Spain Issues 1.5k Crypto Tax Warnings, Colombia to Regulate Exchanges?

Tim Alper
Last updated: | 1 min read

Spain’s Treasury department has issued almost 1.5 thousand citizens with warnings that they may have to pay tax on their cryptocurrency transactions. The Treasury has also warned cryptocurrency exchanges, private companies, banks and private brokers that they must declare any money they have made on cryptocurrency-related deals, per Rioja2.

Source: iStock/masterSergeant

The Treasury issued the following warning to individuals it has identified as having dealt in cryptocurriencies over the past financial year:

“According to data available to the tax authorities, you have carried out transactions using cryptocurrencies. We would like to remind you that profits generated in such operations constitute income subject to IRPF (Spanish Income Tax for freelancers).”

Per media outlet Cope, a total of 14,700 people have been sent Treasury “crypto-warnings” this week, including 470 Murcia residents. IRPF tax returns for FY2018 must be returned by June this year.

Meanwhile, in Colombia, Mauricio Toro, the head of the Congressional Commission for Entrepreneurship has drafted a bill that – if passed – would impose regulations on the country’s budding cryptocurrency exchanges.

Crypto-business has been booming in Colombia in 2019, with record-breaking crypto trading taking place across the entire Latin American region. However, it seems this has not gone unnoticed by Colombian financial authorities – with Toro taking to Twitter to unveil the draft bill.

Highlights of the draft bill include:

  • The creation of a “database” of exchanges “under the jurisdiction” of the Chamber of Commerce.
  • The Chamber of Commerce will “monitor and verify” the exchanges on the database, as well as “their credentials.”
  • Exchanges must operate security systems approved by the Ministry of Information Technologys and Communication.
  • Exchanges must meet anti-money laundering and Know-Your-Customer (KYC) standards.
  • Exchanges will not offer users interest for storing their cryptocurrencies on their platforms.
  • Exchanges will not move customer funds without user agreement.

Toro says the bill is subject to a consultation period that runs until April 8 – after which it is likely to be brought before Congress.