Government officials and lawmakers across the globe are increasingly monitoring and paying close attention to cryptocurrencies and related financial markets. Many nations’ regulatory entities are attempting to introduce new regulations, especially when it comes to taxing profits made from trading digital currencies. After countries like South Korea, Japan, Israel or Australia, it is now Spain’s turn to become more severe regarding crypto taxation.
The Spanish government, specifically the tax department, seems to be tightening its grip and reaffirming its stance on virtual currencies. According to multiple local sources, it has requested data and information on traders and big virtual currency investors, to over 60 companies and firms in the nation. All of these firms are in some way related to digital currencies. The companies include cryptocurrency exchanges, financial institutions, banks, and retailers that accept crypto payments. It is safe to assume that the government is looking to seize information about specific customers who have invested in coins or tokens in the past.
The question of piracy looms large over this decision. Indeed, the data that is requested by the tax agency is extremely personal. Therefore, this might go against what these companies offer their customers in their privacy policies and could represent a breach of privacy. However, since the request comes from the authorities, companies have to comply. It leads us to this question: “Is any of our data really private?”. Moreover, this also goes against one of the main purposes of cryptocurrencies: decentralization – being out of reach of the government and the control of banks. Will customers of these 60 companies react to this news and protest the government’s decision? Will other countries follow Spain in the future?
TLDR: Spain, one of the most important European member state, is looking to identify cryptocurrency investors and traders. To do so, it has requested information about these individuals to numerous companies.