Spain

Tax services are getting pushy to have crypto declared: Law Decoded, Nov. 27–Dec. 4

Spain and Brazil are chasing cryptocurrency stored abroad, while the U.K. wants taxes paid for crypto assets that weren’t previously declared.

Last week, His Majesty’s Revenue and Customs (HMRC) presented an unpleasant Christmas surprise to hodlers in the United Kingdom, demanding they declare any crypto holdings they failed to report in the last four, six or even 20 years. The disclosure must include “exchange tokens,” such as Bitcoin (BTC), as well as any nonfungible tokens (NFTs) and “utility tokens.”

Less harsh in its demands, the Spanish Tax Administration Agency has also reminded its citizens about their obligations to declare crypto, even if they store it abroad.

Brazil will also proceed to tax its citizens’ foreign crypto holdings via a bill already passed in the Chamber of Deputies and expected to be approved by President Luiz Inácio Lula da Silva. The change makes those funds taxable at the same rate as domestic funds.

The SEC is still digging into Binance.US

The United States Securities and Exchange Commission is still looking for evidence that Binance.US had a backdoor to potentially control customer assets similarly to FTX. Anti-Money Laundering laws as part of a $4.3 billion settlement with the U.S.

Spanish tax agency to send over 328K notices to crypto holders

According to the fiscal authority, the number of potential taxpayers who failed to declare their crypto assets rose by 40% in a year.

The Spanish Tax Administration Agency (AEAT) is increasing its efforts to charge the local holders of crypto assets. The AEAT intends to dispatch 328,000 warning notices to those who should pay their taxes on crypto for the 2022 fiscal year.

According to the local newspaper El Mundo, the number of notices increased by 40% in a year, with 150,000 warnings in 2022. However, the fiscal authorities appear to be taking the matter seriously only recently, with just 15,000 notifications in 2021.

However, such activity isn’t focused solely on crypto, with more than 660,000 notices to be sent this year to those who underreported their rental income and 807,000 for their income abroad.

The notices represent the voluntary invitation to pay the tax, which varies between 19% and 23% for gains obtained through selling digital assets. Those who won’t pay the taxes in time would be subject to an additional 26% fine, calculated from the number of unpaid funds.

According to the National Securities Market Commission’s August 2022 report, 6.8% of Spain’s population holds crypto assets. The majority of them are aged 35 to 44, have higher education and earn over 3,000 euros (around $3,300) monthly.

Spain holds the first spot in Europe by the number of crypto ATMs with 231 machines, roughly 15% of the total amount. Globally the country stands fourth after the United States, Canada and Australia.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

Bit2Me and Mastercard launch debit card with crypto cashback

The new debit card builds on technology already in place in the existing Bit2Me crypto card, but this time, card holders are eligible for up to 9% crypto cashback.

The merger of Web2 and Web3 tools continues as crypto-backed debit cards become more mainstream.

In an announcement on Feb. 10, Bit2Me, the largest Spanish cryptocurrency exchange, revealed its new cashback debit card in partnership with Mastercard.

The original Bit2Me card works for its users via the Mastercard network that hosts millions of businesses worldwide. This new update offers users up to 9% crypto cashback for all purchases made with the card online or in-store.

Leif Ferreira, the CEO and co-founder of Bit2Me, told Cointelegraph that the use of already known Web2 financial tools like debit and credit cards comes with the hope of greater adoption of this “revolutionary” technology

“[The] goal is that any user from anywhere in the world has easy access to the limitless world of Web3 financial services, at the touch of a button.”

The card and wallet support eight cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Ripple (XRP), Solana (SOL) and Polkadot (DOT), along with the stablecoin Tether (USDT).

The company reportedly plans to add additional currencies throughout the year. Bit2Me is currently available to users in 69 countries around the world. However, users in the European Economic Area (EEA) are only eligible to apply for the virtual version of the card.

Bit2Me has had service expansion on its radar for some time, after its initial announcement in 2021 to offer services globally. Back in July, the exchange was quick to jump to help 100,000 blocked crypto investors onboard onto its platform after they wereshut out from the defunct local Spanish trading platform 2gether.

Meanwhile, Mastercard has also been active in offering new services and opportunities for users and clients in the Web3 space. It has chosen at least seven blockchain and crypto startups to be a part of its fintech accelerator program in the last year.

The company also partnered with Polygon to launch a Web3 musician accelerator program, focusing on the intersection of the music industry and emerging technologies.

On Jan. 31, Mastercard announced a new effort with Binance to launch their second prepaid crypto card in Latin America.

Bitzlato CEO arrested by Spanish police: Report

Authorities seized an estimated $19.8 million worth of crypto, fiat and luxury goods from Bitzlato executives related to an ongoing money laundering investigation.

According to a Feb. 2 report by Turkish news agency Anadolu, Spanish authorities have arrested the CEO of Hong Kong cryptocurrency exchange Bitzlato, as well a sales executive and itsmarketing director . In total, six Russian and Ukrainian nationals related to the exchange were arrested in a joint effort between France, Portugal, Cyprus and United States law enforcement.

According to Spanish police, the exchange’s anonymity allowed it to become the platform of choice for criminal organizations seeking to launder money via cryptocurrency. Authorities seized 18 million euros ($19.8 million) in digital assets, luxury cars, cash, smartphones and other items related to the investigation and blocked over 100 exchange accounts.

The move comes just two days after co-founder Anton Shkurenko stated in an interview that 50% of the Bitcoin (BTC) held in Bitzlato wallets could be withdrawn when the exchange relaunches, after investigators seized approximately 35% of users’ funds held in the exchange’s hot wallets. Regarding this, Shkruenko said that the new Bitzlato will be based in Russia and “out of reach of law enforcement authorities.”

On Jan. 18, the U.S. Department of Justice announced an enforcement action against Bitzlato, alleging that a lack of Know Your Customer and Anti-Money Laundering compliance helped cybercriminals launder over $700 million via the Bitzlato exchange. The same day, Bitzlato websites were shut down, with a portion of exchange funds seized by police. Its co-founder, Anatoly Legkodymov, a Russian national and resident of China, was arrested in Miami around the same day.

*Bitzlato’s homepage after the enforcement action*

Spain’s central bank approves euro-linked token pilot as part of sandbox initiative: Report

To use the tokens, users will need to verify their identity through phone and video identification, and load their wallet with real euros.

The financial sandbox initiative of the Bank of Spain, or Banco de España, has reportedly approved a project from fintech firm Monei testing a token linked to the euro.

According to a Jan. 18 report from Spain-based news outlet Cinco Días, the Bank of Spain gave the green light to Monei to issue its EURM token as part of a testing phase expected to last between six to 12 months. The sandbox was aimed at establishing a controlled testing environment for financial innovation projects in Spain under the supervision of central bank authorities.

As part of EURM’s testing phase, eligible Spanish residents with a phone number will reportedly be able to send the equivalent of 10 euro using the digital asset. The digital tokens will reportedly be backed 1:1 with physical euros held at Banco Bilbao Vizcaya Argentaria and Caixabank.

“The future of payments is digital,” said Monei CEO and founder Álex Saiz Verdaguer. “This is our opportunity to show the rest of Europe and the world that we are at the forefront.”

The Bank of Spain announced the launch of its own “exclusive” wholesale central bank digital currency, or CBDC, program in December. Though Monei’s project is not a CBDC issued by the European Central Bank, or ECB, Verdaguer said testing it through Spain’s central bank could lay the groundwork for such a token:

“[The Bank of Spain] may sit down with the ECB and say that we have the product, that it is regulated and supervised and that it is shaped from there.”

The ECB announced in July 2021 that it had launched a two-year investigation phase for a digital euro, suggesting at the time a potential release in 2026. The central bank has since issued statements and working papers focused on the design and features of a CBDC, with the ECB Governing Council expected to review the results of the investigative phase in the third quarter of 2023.

Crypto billionaires’ subsequent deaths spark wild theories among the community

Many blamed the deaths on billionaires’ past, while others suspected some form of foul play and even execution.

The death of four crypto billionaires within a month has caught the crypto community’s attention. These deaths occurred under suspicious circumstances, and more importantly, some of these billionaires have raised alarms about being in danger.

4 crypto billionaires dead in the span of a month. Just before, and during the FTX collapse.

Too strange

sound … pic.twitter.com/ubtpweiJcw

— Wall Street Silver (@WallStreetSilv) January 9, 2023

The death spiral started towards the end of October when Nikolai Mushegian, the co-founder of MakerDAO, was found dead on a Puerto Rican beach just hours after tweeting that intelligence agencies were after him. The next billionaire to perish was broker Javier Biosca, who was found dead on Nov. 22, 2022, in Estepona. At the time, Biosca was being investigated for the biggest cryptocurrency fraud in Spain.

On Nov. 23, 2022, Amber Group’s co-founder Tiantian Kullander, was found dead mysteriously in his sleep. Just two days later, Russian crypto billionaire Vyacheslav Taran died in a helicopter crash.

Apart from these four suspicious deaths, another death made headlines on Dec. 30 when Mr. Park Mo, the vice president of Vidente, the largest shareholder of South Korean cryptocurrency exchange Bithumb, was found dead mysteriously in front of his house in the early morning.

The four deaths of crypto billionaires within a month’s time gave fuel to several conspiracy theories among the crypto community. One user associated the string of deaths with a mafia-style hit job and said that the “crypto world is taking a page from the mafia handbook.”

Another user associated the death spiral with the “central banking hierarchy,” sarcastically saying, “I would definitely not put money on it being connected to the central banking hierarchy. There is no way. They are very trustworthy. 100% no chance.”

Others questioned the source of the information but did acknowledge the fact that four deaths in less than a month call for some suspicion. While a few Redditors also pointed towards the possibility of faking deaths, where one user wrote, “I wonder how many of these are people faking their own deaths.”

Many Redditors also speculated that these billionaires might be living under fake names and they are using death to start a new inning in their life.

The deaths of four crypto billionaires are for sure a cause of concern, but the crypto ecosystem is known for its fascination with conspiracy theories. A similar saga erupted in May 2020 when the CEO of defunct crypto exchange QuadrigaCX mysteriously died during a visit to India.

Crypto billionaires’ back-to-back deaths spark wild theories among the community

Many blamed the deaths on the billionaires’ past, while others suspected some form of foul play and even execution.

The death of four crypto billionaires within a month has caught the crypto community’s attention. The deaths occurred under suspicious circumstances, and some of these billionaires had even raised alarms about being in danger.

4 crypto billionaires dead in the span of a month. Just before, and during the FTX collapse.

Too strange

sound … pic.twitter.com/ubtpweiJcw

— Wall Street Silver (@WallStreetSilv) January 9, 2023

The spiral started toward the end of October 2022 when Nikolai Mushegian, co-founder of MakerDAO, was found dead on a Puerto Rican beach just hours after tweeting that intelligence agencies were after him. The next billionaire to perish was broker Javier Biosca, who was found dead on Nov. 22 in Estepona, Spain. At the time, Biosca was being investigated for the biggest cryptocurrency fraud in Spain.

On Nov. 23, Amber Group co-founder Tiantian Kullander died mysteriously in his sleep. Just two days later, Russian crypto billionaire Vyacheslav Taran died in a helicopter crash.

Apart from these four suspicious deaths, another death made headlines on Dec. 30 when Park Mo, vice president of Vidente — the largest shareholder of South Korean cryptocurrency exchange Bithumb — was found dead in front of his house in the early morning.

The four crypto billionaire deaths within a month gave fuel to several conspiracy theories among the crypto community. One user associated the string of deaths with a mafia-style hit job and said that the “crypto world is taking a page from the mafia handbook.”

One user questioned the information sources but acknowledged that seeing four deaths in less than a month is suspicious. On the other hand, several Redditors speculated that they may not have actually died at all, with one writing, “I wonder how many of these are people faking their own deaths.” Another speculated that the billionaires might be living under fake names and are using their “deaths” to start a new chapter of their life.

The deaths may be a cause of concern, but the crypto ecosystem is also known for its fascination with conspiracy theories. A similar saga erupted in May 2020 when the CEO of defunct crypto exchange QuadrigaCX mysteriously died during a visit to India.

Australia overtakes El Salvador to become 4th largest crypto ATM hub

El Salvador’s position as the fourth-largest crypto ATM hub was short-lived as Australia stepped up its game over the following months.

El Salvador, the first country to legalize Bitcoin (BTC), has been pushed down yet another spot in total crypto ATM installations as Australia records 216 ATMs stepping into the year 2023.

As part of El Salvador’s drive to establish Bitcoin as a legal tender, President Nayib Bukele decided to install over 200 crypto ATMs across the country. While this move made El Salvador the third-largest crypto ATM hub at the time after the United States and Canada in September 2021, Spain and Australia overtook the Central American country’s ATM count in 2022.

On October 2022, Cointelegraph reported that Spain became the third-largest crypto ATM hub after installing 215 crypto ATMs. However, Spain continued its installation drive and is home to 226 crypto ATMs at the time of writing. El Salvador’s position as the fourth-largest crypto ATM hub was short-lived as Australia stepped up its game over the following months.

In the last three months of 2022, Australia deployed 99 crypto ATMs, confirms data from CoinATMRadar. As of Jan. 1, 2023, Australia recorded 219 active crypto ATMs, overshadowing El Salvador by 7 ATMs at the time of writing.

Australia represents 0.6% of global crypto ATM installations and, at this rate, is well-positioned to take over Asia’s crypto ATM numbers, which stand at 312 ATMs. The total number of crypto ATMs worldwide is 38,602, out of which 6,071 ATMs were installed in 2022 alone.

Nigeria’s drive to impose the adoption of an in-house central bank digital currency (CBDC) — eNaira — forced the government to limit ATM cash withdrawals to $225 (100,000 nairas) a week.

“Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS, eNaira, etc.) to conduct their banking transactions,” noted Haruna Mustafa, the director of banking supervision, while announcing the drive.

Bitstamp gets a crypto license from the Bank of Spain

The EU-based exchange became the 46th crypto business to obtain a permit to offer virtual currency exchange services for fiat currency in the country.

Crypto exchange Bitstamp reported obtaining a license for operations with crypto in Spain. It marks approval in yet another European jurisdiction for an exchange, which has been focusing on the European Union market since its launch in 2011.

The company revealed the news about its Spanish license on Nov. 17. The approval from the Bank of Spain lets Bitstamp’s local subsidiary offer digital currency exchange services for fiat currency and electronic wallet custody services to Spanish users. Bitstamp became the 46th virtual asset provider to receive a license in Spain, following the likes of Binance and Bitpanda.

Spain has recently demonstrated a moderate approach to crypto regulation, which goes hand in hand with a high pace of adoption in the country. In January, the local financial regulator Comisión Nacional del Mercado de Valores (CNMV) announced a set of rules for crypto-asset investments advertising, demanding them to be “clear, balanced and fair.”

By this fall, the country became home to the third-largest network of Bitcoin (BTC) and cryptocurrency ATMs after the United States and Canada. It currently hosts 215 crypto ATMs, pushing El Salvador — with 212 — down to the fourth position after surpassing the country by the ATMs.

In September, the multinational telecom company based in Madrid, Telefonica, enabled payments with cryptocurrencies like Bitcoin and many others on its online tech marketplace called Tu. The firm integrated a crypto payment feature provided by the Spanish crypto exchange Bit2Me to receive crypto in exchange for their tech products.

Bitstamp has been increasing compliance efforts in recent years. In April, it requested users to update the origin of cryptocurrencies stored on the platform for regulation purposes. The exchange provided an official list of examples of documents clarifying fiat-related sources of wealth of deposited funds, including salary and pension payslips, inheritance documents, payslips for savings, gifts, mining receipts and others.

Spain overtakes El Salvador to become third largest crypto ATM hub

Spain currently hosts 215 crypto ATMs, pushing El Salvador — home to 212 crypto ATMs — down to the fourth position after surpassing the country by 3 crypto ATMs.

The European country of Spain is officially home to the third-largest network of Bitcoin (BTC) and cryptocurrency ATMs after the United States and Canada.

Spain currently hosts 215 crypto ATMs, pushing El Salvador — with 212 crypto ATMs — down to the fourth position after surpassing the country by 3 crypto ATMs. Data from CoinATMRadar confirms that Spain represents 0.6% of the global crypto ATM installations.

*Crypto ATM distribution by continents and countries. Source: CoinATMRadar*

Moreover, the revelation places Spain as the highest contributor to crypto ATMs in Europe, which represents 14.65% of total installations in the continent, followed by Switzerland (144 ATMs), Poland (142 ATMs) and Romania (135 ATMs).

*Crypto ATM installation growth in Spain. Source: CoinATMRadar*

In 2022 alone, Spain installed 43 crypto ATMs and has previously shared its intent to install a total of over 100 ATMs by the end of the year — taking up the total to nearly 300 crypto ATMs once completed.

MediaMarkt, a German electronics retailer, and Confinity, among others, are leading the drive to install crypto ATMs across Austria, Germany, Spain and Greece.

On the contrary, global crypto ATM installations saw a negative growth since September 2022 and are on the path of slow recovery at the time of writing. Calculations based on data from the last 60 days show that around seven crypto ATMs are being installed daily worldwide.

Greece takes the sixth spot in terms of cryptocurrency ATMs, and with the influx of tourists, Bitcoin ATM operator BCash shared insights on the usage statistics in the country.

Speaking to Cointelegraph, BCash managing director and co-founder Dimitrios Tsangalidis revealed that despite installing crypto ATMs in tourist hotspots, most usage comes from the main city area.

However, the island of Crete attracts a very loyal cryptocurrency crowd,” as explained by Tsangalidis:

“There is a strong crypto community in Heraklion of Crete [which is] the location of one of our ATMs.”

According to Tsangalidis, a combination of crypto winter and tourist seasons has resulted in a slowdown in terms of regular traffic in crypto ATM usage.