Spain has Just Approved a New Law in Regards to Declaration of Overseas Cryptocurrency Assets
As per the latest reports, a new and controversial law has been passed/approved by the parliament of Spain. The approval of the new law is pertaining to the holdings of cryptocurrencies by the people in Spain. The sources suggest that with the implementation of the new law, Spanish citizens will have to reveal their cryptocurrency holdings based on foreign cryptocurrency exchanges.
According to analysts and observers, the new law passed by the Spanish Parliament is very considered very controversial. The sources suggest that the Government of Spain has done this to fight off scams and fraudulent activities taking place from scamming firms based outside of Spain.
The country is now taking necessary steps to wipe out any scams and fraudulent activities within the country currently taking place in the cryptocurrency industry.
The law has overcome its final obstacle and now, it can easily implement it, which would complete its process for the Model 720 system. This is only after the decision made by the parliament of Spain, approving the law and helping it streamline the crypto-industry in the country.
The ministry of finance in Spain also had their remarks around the implementation of the Model 720 system. The ministry stated that previously, its requirements and process were considered ineffective. There were some regulatory authorities and countries in the European Union that even criticized the system for being very strict.
However, with time, the need for the Modelo 720 system has become clearer for the rest of the world. With the constant increment of the money-laundering activities and cases due to the cryptocurrency industry all over the world. The countries are now becoming stricter against such activities and firms that are responsible for making this happen.
According to the Modelo 720 system, the citizens of Spain holding cryptocurrency assets inside and outside of the country would be required to reveal them. They will have to show their real estate, overseas bank account holdings, stocks, and other financial assets, including cryptocurrencies.
Still, Spain is the only country that has adopted the Modelo 720 system while the rest of the countries in the European Union are reluctant to adopt it. They are not touching the topic because of the legalities and requirements that they would have to go through in order to implement the modelo.
Moreover, the legal experts from Spain have continued contesting the criticism posed by the rest of the EU members. The case is still going through back and forth arguments at the EU where the legal experts from Spain are constantly stressing upon the implementation of the Modelo 720 system.