The warnings issued by the Spanish Tax Administration Agency to crypto proprietors in Spain are part of a broader assault in which governments seek to combat the potential underreporting of taxable transactions in the sector.
The agency planned to issue 328,000 crypto-related notices to taxpayers this year, according to El Mundo, a 40% increase from the previous year.
A spokesperson for the Spanish Tax Administration Agency told Blockworks in an email that, despite the year-over-year increase, the current number is still “moderate” when compared to the number of crypto investors.
Notices will be included in taxpayers’ tax data documents. These include fundamental information to assist with tax preparation.
The spokesperson stated that the current methods for acquiring the information used to issue these crypto-related notices originate from information requirements for financial institutions, but declined further comment.
He added that the Spanish government has probably specifically asked for taxpayer information from crypto exchanges operating in Spain.
The warnings were issued after the Spanish agency announced in February that its collections division would intensify efforts to locate crypto assets deemed susceptible to seizure.
The agency added at the time that its Customs Surveillance Service would devise an investigation plan on crypto use to detect assets whose origin may be linked to criminal activity.
Spain has previously issued requirements for crypto exchanges to comply with the anti-money laundering directive of the European Union. According to Pat Larsen, co-founder and CEO of ZenLedger, this made investor anonymity significantly more challenging to maintain.
Larsen stated that the evolution of technologies such as data analysis and blockchain forensics has made it easier for tax authorities to identify potential crypto merchants. On the front of regulation, large blockchain forensics companies are collaborating with EU administrations.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.