The Spanish government has approved a bill requiring crypto holders to disclose their cryptocurrency holdings and gains on assets.

Following the weekly cabinet meeting, Spain’s Finance Minister and government spokesperson, Maria Jesus Montero announced that the bill is part of wider legislation involving a crackdown on tax fraud, reports bitcoin.com.

Earlier this week the bill was forwarded to the Spanish Congress of Deputies and is currently heading to parliament for discussion and final approval.

Montero stated: “This is a bill that will add to the work already being carried out by tax authorities.”

This is one of the government’s most recent initiatives to increase tax revenue amid the economic crisis fuelled by the coronavirus pandemic.

The bill, called “Law on preventive measures to combat tax avoidance,” seeks heightened control over cryptocurrencies, according to the Criptonoticias publication, adding that the government intends to “oblige citizens to provide detailed information on balances and transactions carried out inside and outside of Spain.”

Should the legislation gain approval, cryptocurrencies will be required to be reported to the authorities, including “acquisition, transmission, exchange, transfer, collections and payments.”

Spain’s tax authority, the Agencia Estatal de Administración Tributaria (AEAT), started to issue tax notices to crypto owners back in April to remind them of their tax obligations.

According to a Global Legal Insights report, capital gains from the sale of cryptocurrencies by a resident of Spain are taxed between 19% and 23%.
The higher rate is applicable to gains of more than €50,000. The exchange between cryptocurrencies and euros is exempt from VAT. 
Furthermore, 350 Spanish deputies were sent Bitcoin last week within an educational campaign undertaken by blockchain platform Tutellus and Observatorio Blockchain.