Spanish Tax Agencies are Collecting Information About Crypto Traders from Banks

Tax Information

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Several cryptocurrency investors in Spain have discovered that their identities were traced by Spanish tax authorities making them solicit their banks to help them prove no wrongdoing. The banks have received requests from customers to provide them with account documentation so that they can respond to inquiries from the tax authorities. The banks include Banco Bilbao Vizcaya Argentaria SA and Banco Sabadell with both requesting not to be named because the subject was sensitive. Spanish banks which we contacted informed us that they don’t trade Bitcoin but instead hold funds for their customers.

Many countries around the world are struggling to regulate digital currencies by defining them as an asset class for tax legislation, governance of capital gains and for the avoidance of money laundering. The anonymity nature of cryptocurrency is, however, proving to be the biggest challenge, and many experts say cryptocurrency can best be controlled at the global level.

Last month officials from the Spanish tax collection agency said that they had begun asking for information from lenders about the citizens involved in digital currencies. The banks have however declined to comment about the issue terming it as sensitive. Bankinter SA stated that they do not offer crypto trading services to their clients.
The issue of cryptocurrency remains to be a headache to many countries who want to control digital currencies.

This is because people are now avoiding doing transactions through banks but are now doing them through groups. Last month Cryptona reported that some of the biggest crypto traders had formed Skype groups where they trade their cryptocurrencies to reduce the monitoring done by governments and tax agencies through the exchanges.

Several exchanges have developed a new platform called know your customer which means anonymous traders cannot transact through exchanges anymore. Positive regulation may be good by if traders are unhappy about it then they may continue trading in groups at the expense of exchanges.

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