The Spanish authorities continued to advise holders of cryptocurrencies, issuing letters warning them of the consequences, if they do not comply with the obligation to declare the amounts they hold. In case of non-compliance with the above obligation may result in the imposition of a fine of more than 5.900 euros.
The people who hold cryptocurrencies are required to declare profits in their tax returns this year, and as reported, they are not controlled for the cryptocurrency purchases they have made but only for profitable sales. It is also clarified that they are obliged to declare the sales made in 2020 in the following cases: Either when they exchanged cryptocurrencies for euros, or when they exchanged them for other cryptocurrencies, or when they exchanged them for goods, for example, if they bought a car, an apartment or anything else.
The tax authorities had targeted a total of 66.000 people who held cryptocurrencies in 2020, a much higher number than the recipients of the warning letters so far. On the contrary, in 2019 this number was significantly lower and reached 14.700 recipients.
Last February, Ana de la Cueva, Spain’s finance minister, warned of the dangers of cryptocurrencies, as they do not provide the protection afforded by traditional payment systems against default by counterparties.
This approach “Does not provide the protection afforded by traditional payment systems against default by counterparties” suggest two different approaches to the “problem” of the traditional economy.
Whether they know and do not really understand anything about the structure and function of cryptocurrencies by nature, or what they see in the “big picture”, they are all kinds of scammers flooding the cryptocurrency space, deceiving the uneducated and unsuspecting “wannabe investors”.
Perhaps we should pay more attention to the second approach, considering that we recently wrote that Spain will limit advertising to bitcoin and other cryptocurrencies because bitcoin-related scams are on the rise. There are many who take advantage of the ignorance of the unsuspecting and naive who do not know the system but are bombarded daily with news and advertisements that literally drive them crazy.
After all, if even experienced investors do not have the tools to minimise the risks of instability, the most exposed are those who enter the space without actually realising anything.