If approved, the EU’s UCITS funds would make way for crypto assets to gain exposure to a 12 trillion euro investment product market.
Here’s How EU Nations Are Preparing to Enforce MiCA
With MiCA stablecoin rules taking effect in June, CoinDesk reached out to regulators in all 27 EU member states to show where countries are at with implementation.
EU’s MiCA Rules Have Had Little Influence on the European Crypto Market, Regulator Says
The rules, which take effect at the end of the year, have yet to spur increased euro-based transactions in crypto markets.
EU Watchdog Says Reordering Blockchain Transactions Might Be Market Abuse. Industry Says It’s Not
Maximum Extractable Value (MEV), in which crypto miners reorder transactions they validate for profit, is not inherently bad, some policy experts point out.
EU Regulators Publish Batch of Draft Rules for Stablecoins Under MiCA
The draft Regulatory Technical Standards (RTS) lay out requirements for issuers when dealing with complaints about stablecoins referencing multiple currencies.
Upcoming High-Level EU Financial Policy Talks Could Steer Crypto Oversight: Source
An informal document shared among EU officials shows digital finance, and thereby crypto, topping a list of priorities to be discussed.
The Big Misunderstanding: What MiCA Really Means for Stablecoins in Europe
The EU’s comprehensive crypto guidance does not introduce entirely new regulations for fiat backed stablecoins, former central banker Jón Egilsson writes. Instead it affirms existing rules that many current issuers are not yet following.
Crypto Winter In Spain? New Taxes Target Digital Assets
In a move that could have ripple effects across Europe, Spain is tightening its grip on crypto monitoring and seizing digital assets for tax debts. The Ministry of Finance, led by María Jesús Montero, is spearheading legislative reforms to grant the Spanish Tax Agency enhanced powers to identify and seize crypto holdings from taxpayers with outstanding debts.
This follows a February 1st decree expanding the entities obligated to report tax information to the Treasury, encompassing banks, savings banks, and even electronic money institutions.
The measures come amidst Spain’s proactive approach to regulating the digital asset landscape ahead of the European Union’s Markets in Crypto-Assets Regulation (MiCA) framework, set for full implementation in December 2025.
Key Provisions Of The Crackdown
The proposed crackdown on cryptocurrency in Spain includes several key provisions aimed at strengthening the government’s ability to regulate and collect taxes in the digital asset space.
One major aspect of the legislative changes is the expansion of the Tax Agency’s authority, granting it the power to directly identify and seize assets associated with taxpayers having overdue debts.
Additionally, the February 1st decree widens the scope of entities obligated to report tax-related data to the Treasury. This now includes not only banks, savings banks, and credit cooperatives but also electronic money institutions. This expanded list potentially provides a broader framework for tracking digital currency transactions.
Spanish residents holding crypto assets on foreign platforms are subject to a mandatory declaration to the tax authorities by the end of March 2024. Initiated on January 1st, 2024, this declaration period requires individuals and corporations to disclose the value of their crypto holdings abroad as of December 31st, 2023.
While all Spanish residents with foreign crypto holdings are required to make a declaration, only those exceeding €50,000 (approximately $54,000) are obliged to declare them for wealth tax purposes.
Individuals holding their crypto in self-custodied wallets, outside of exchange platforms, must report them through the standard wealth tax form. These measures collectively aim to establish a more robust regulatory framework for cryptocurrency transactions and holdings in Spain.
Spain At The Forefront Of Crypto Regulation
Spain’s proactive stance on crypto regulation positions the country as a frontrunner within the European Union. Notably, the country is implementing its own crypto regulatory framework ahead of the EU-wide MiCA framework coming into effect in late 2025. This preemptive approach underscores Spain’s commitment to establishing clear regulations within the crypto space.
Furthermore, Spanish tax authorities issued over 325,000 warnings in 2023 to residents who failed to declare their crypto holdings, marking a significant increase from the 150,000 warnings issued in 2022. This highlights the government’s growing focus on ensuring compliance within the crypto tax landscape.
Challenges And Considerations
While Spain’s efforts to regulate and tax cryptocurrencies are notable, some potential challenges remain. The rapid implementation of these changes might pose regulatory hurdles, requiring careful calibration to ensure effectiveness and minimize unintended consequences.
Additionally, accurately tracking and seizing self-custodied crypto assets, held outside of exchange platforms, could prove difficult due to the inherent anonymity associated with such wallets.
Global Implications
Spain’s move could serve as a precedent for other countries seeking to establish frameworks for monitoring and taxing cryptocurrencies. As the global crypto market continues to evolve, Spain’s proactive approach offers valuable insights for policymakers worldwide navigating the complexities of regulating this dynamic asset class.
Featured image from Pixabay, chart from TradingView
Crypto Needs Cohesive Regulation – A Look at Europe’s MiCA
From the U.S. to South Asia, jurisdictions are creating a patchwork of crypto regulatory regimes, making international business harder. Europe, with its bloc-wide Markets in Crypto-Assets Regulation (MiCA), is different.
Crypto Industry Cautiously Welcomes Agreement on New EU AML Rules
Customer due diligence requirements for crypto firms may be more stringent than for banks, policy watchers told CoinDesk.
EU Banking Watchdog Extends Anti-Money Laundering Measures to Cover Crypto Firms
The European Banking Authority issued new guidance for crypto firms that will come into effect on Dec. 30, 2024.
EU Industry Input ‘Really Important’ to Stablecoin Rulemaking Under MiCA, EBA Officials Say
During a Thursday hearing on proposed guidelines for stablecoin issuers, European Banking Authority officials urged stakeholders to engage with regulators to “start on the right footing.”
EU Banking Watchdog to Deepen Probe of Links Between Banks, Crypto Entities: FT
The European Banking Authority (EBA) will take additional steps to anticipate how strains in non-bank financial institutions (NBFIs), including cryptocurrency-related entities, will affect banks.
Robinhood Broadens Crypto Service to Europe, Notes Region’s Digital Asset Regulation
The company said it chose Europe to anchor its crypto expansion outside the U.S. because of the region’s comprehensive rules.
Stefan Berger: The Man Who Made MiCA
Stefan Berger steered through the European Union’s world-leading Markets in Crypto Assets Regulation (MiCA) this year in the aftermath of FTX and other scandals. He’s now working on a digital euro.
FTX collapse, Binance’s US settlement provide strong case for MiCA regulations
European Commission policy officer Ivan Keller highlights high-profile centralized exchange shortcomings as key reasons for the implementation of MiCA regulations in Europe.
The Global Movement to Promote Crypto Tax Transparency — What You Need to Know
In Europe and the U.S., there are a host of initiatives placing new requirements on participants in digital asset markets to report on transactions and meet other new provisions.
EU Banking Watchdog Issues Draft Liquidity Rules for Stablecoin Issuers
Three consultations on relevant rules will run until Feb. 8, 2024, the European Banking Authority has said.
Spain Brings Forward MiCA Crypto Rules by Six Months After EU Pressure
The government hopes the move, potentially affecting the likes of Binance and Coinbase, will bring greater regulatory clarity.
Spain to implement MiCA six months ahead of July 2026 deadline
The country said EU crypto rules will come into force in December 2025, ahead of the general deadline for implementing MiCA for all 27 member states of the EU.