Spain Approves Bill Requiring Disclosure of Cryptocurrency Assets

Spain Approves Bill Requiring Disclosure of Crypto Assets

The Spanish government has approved a draft anti-fraud law that, among other things, will require investors in cryptocurrencies such as bitcoin cash to declare all of the assets they hold at home and abroad, according to local media reports. The intention is to ring-fence taxes and prevent tax evasion, particularly on an asset class that until now has appeared to be exempt from regulatory oversight.

Also Read: Genesis Global’s Bitcoin Loans Hit $553m in 6 Months

Citizens to Report Domestic
and Overseas Holdings

María Jesús Montero, the Spanish minister of finance, said on Oct. 19 that under the proposed legislation, Spanish citizens will have to clearly identify themselves and their cryptocurrency holdings. She added that citizens holding digital currency investments outside of the country will also be expected to report their investments to the Spanish authorities every year.

Spain Approves Bill Requiring Disclosure of Crypto Assets
María Jesús Montero

“It is stated as mandatory that people and companies inform the Tax Agency about this operation,” the Madrid-based daily newspaper ABC has quoted Montero as saying.

The Spanish Council of Ministers, which is chaired by Prime Minister Pedro Sánchez, has approved the draft legislation. If the bill is passed into law, cryptocurrency investments will become subject to the country’s 720 disclosure form, a stringent tax reporting system that primarily targets the overseas investments of Spanish citizens. Under this model, taxpayers can face stiff penalties of up to €5,000 ($5,740) for every inaccurate or false detail they report on their earnings, according to Bloomberg.

Cautious on Crypto

Spain Approves Bill Requiring Disclosure of Crypto Assets

The regulation of cryptocurrencies in Spain remains somewhat opaque, which is broadly reflective of wider sentiment throughout the European Union. Profits from cryptocurrency transactions are currently taxable under legislation covering matters related to individual income taxes. However, the country’s General Directorate on Taxation has established that transactions involving bitcoin are exempt from value added taxes. Cryptocurrency mining isn’t taxed either, but it remains unclear whether that might change.

The Spanish central bank and Comisión Nacional del Mercado de Valores, the country’s securities regulator, issued a statement in February stating that bitcoin and other digital coins are not legal tender. They also warned investors against the risk of fraud or potential losses from such investments.

What do you think about the Spanish draft bill on the disclosure of cryptocurrency investments? Let us know in the comments section below.

Images courtesy of Shutterstock.

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Original Article

Swiss Financial Association Publishes Anti-Money Laundering Standards for Digital Assets

Switzerland’s Capital Markets and Technology Association (CMTA) has published new anti-money laundering standards for digital assets and DLT in the financial market.

The Switzerland-based Capital Markets and Technology Association (CMTA) has published new anti-money-laundering (AML) standards for digital assets and distributed ledger technologies (DLT) Oct. 18.

CMTA is a non-profit, independent association established in Geneva earlier this year with the aim of promoting the adoption of DLT, such as blockchain, and digital assets in the financial markets.

Its creation was a joint initiative from online bank Swissquote, market software provider Temenos, and the country’s largest law firm Lenz & Staehelin.

According to CMTA, the newly-published standards are designed to “clarify […] measures to be taken in order to comply with the Swiss regulations against money laundering and the financing of terrorism.” As per CMTA general secretary Fedor Poskriakov, the document is intended to “pav[e] the way for a compliant tokenization of financial assets.”

The document is split into two parts, the first of which outlines compliance standards for digital asset issuers, whether or not they formally designate themselves as Initial Coin Offerings (ICOs); the second addresses Swiss banks, securities dealers, and other intermediaries who may wish to enter into business relationships with digital asset issuers or investors, or whose business practices involve “a material exposure” to digital assets and/or DLT.

Notably, the standards are not statutory and do not have formal regulatory status, yet CMTA states they “represent a consensus” among financial sector experts as to how good practice should be established and conducted in the emerging digital assets space.

CMTA outlines that the guidance has been developed on the basis of a range of legislative frameworks, including the Swiss Anti-Money Laundering Act (AMLA), the Swiss Anti-Money Laundering Ordinance (AMLO), FINMA's Anti-Money Laundering Ordinance (AMLO-FINMA) and other laws for Swiss banks’ code of conduct and due diligence requirements.

As reported last week, France’s intergovernmental organization, the Financial Action Task Force (FATF), has recently updated its standards regarding digital currencies to ensure that virtual asset service providers are subject to AML and CFT regulations.

Earlier this week, Swissquote announced it had become “the first bank worldwide” to offer purchase and custodial services of ICO-issued tokens for clients.

Original Article

The Death of Hype, Amara’s Law and the Crypto-Anarchist Dream

The Death of Hype, Amara's Law, and the Crypto-Anarchist Dream

The hype surrounding blockchain and cryptocurrency has simmered to a dull roar. Last December, the markets spiked as traders drooled over the thought of lining their pockets. They believed they would be billionaires. They had erotic dreams of lambos, mansions, hookers and blow. Many of them embraced a get-rich-quick, shit-brained mentality. They put speculation over philosophy. The majority of them got financially destroyed for their greed. In their fragilista-like thinking, they either forgot the purpose of the technology or came into the space without acknowledging the crypto-anarchism that created it.

Also read: Markets Update: Stable Cryptocurrencies and Unstable Pegged Coins

Novel Technology Is Fueled by Hype

Anyone who has studied technological trends could have predicted what happened. Any The Death of Crypto Hype, Amara’s Law, and the Crypto-Anarchist Awakeningnovel technology is originally fueled by hype. When the technology emerges, new entrants see dollar signs. They want to exploit the technology to get rich. These people are pseudo-entrepreneurs or unprincipled traders. They don’t give a damn about changing the world, much less simplifying life for the average person.

There is nothing wrong with earning money or getting rich. That is what the capitalist spirit and entrepreneurial drive are all about. However, if people’s sole focus is to just to make money, they are doomed to failure. There has to be an underlying drive or motivating purpose. Without that fundamental principle guiding the entrepreneur, people are likely to go broke, fall prey to scams, or simply get rich but be unhappy.

Amara’s Law

There is an explanation for why early technologies succumb to bad actors and people with unwholesome motivations. Amara’s Law provides an apt summation. The law states: “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”

This overestimation of technology’s effect is accompanied by the fraudsters, pseudo-entrepreneurs, and other unsavory types. When technologies emerge, people take advantage of the newness; they take advantage of the newbies. In this timeframe, there is a swirl of misunderstanding surrounding the tech, and this is fertile ground for the creation of victims. Scam victims. The victims of hype. And victims of greed. In this regard, “overestimation” is a synonym for “hype,” which leads to bad behavior and avarice within the industry.

Consolidation: Weeding out the Bad Actors and Scam Artists

However, in the long term, the ecosystem naturally weeds out the bad actors. Many of The Death of Crypto Hype, Amara’s Law, and the Crypto-Anarchist Awakeningthem get thrown in government cages. The projects that aren’t scams simply fail, and much of the greed begins to dissipate as reality sets in. This is a consolidation phase. In the cryptocurrency environment, this consolidation phase is propped up by self-governance.

Currently, the crypto ecosystem is trying to discover ways to promote self-governance, rather than locking people in cages. This means developers are considering platforms to help vet companies within the space. Indeed, the community must fashion an environment of self-governance to stymie politicians and bureaucrats.

Many in the ecosystem pontificate on the evil nature of scams and money grubbers, but then they vie for government to come solve all the problems. This is muddy thinking, and it verges on hypocrisy. If a person loathes fraudsters, the last thing they are going to do is invite government goons into the melee. Government is one of the largest criminal organizations and conduits of fraud to ever exist. Summoning them would be like calling a murderer to prevent murder. It makes zero sense.

Reawakening to the Purpose of Cryptocurrency

People must acknowledge where cryptocurrency came from. They must recall the past in order to make decisions for the future. If they want to get lost in the hype, they should at least do some research on the cypherpunks and crypto-anarchists. Crypto-anarchy was the underlying motivating factor. It’s the reason for this technology.

In the long term, I don’t believe people will underestimate the technology via Amara’s law. The fact crypto was built to undermine the state apparatus is an idea that can never be underestimated, and thus people will begin embracing it. The beautiful thing about cryptocurrency is it changes people’s psychology. It teaches them about sound money, by rewiring their brain. It also reminds them they own themselves, and that no one deserves to extort the fruits of their labor. The crypto-anarchist dream, then, is the real source of hype – not all the speculation and ramblings about getting rich.

Do you agree that crypto-anarchism should be the real driving force of cryptocurrency adoption? Let us know in the comments section below.

Images courtesy of Shutterstock.

OP-ed disclaimer: This is an Op-ed article. The opinions expressed in this article are the author’s own. Bitcoin.com does not endorse nor support views, opinions or conclusions drawn in this post. Bitcoin.com is not responsible for or liable for any content, accuracy or quality within the Op-ed article. Readers should do their own due diligence before taking any actions related to the content. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any information in this Op-ed article.

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Original Article