Spanish national tax agency has sent 14,800 warning letters to crypto holders who have not declared their crypto assets. According to news.Bitcoin.com, citing Telemadrid, the Hacienda Tax Service obliged taxpayers to declare their crypto holdings in their tax filings. In case they do not declare those assets, they could receive fines in the amount of over 5,000 euros.
The source says, citing the tax agency, that the tax notice does not concern simply purchasing or holding crypto. However, if taxpayers profited, then they have to declare those gains. That is, for example, in the case of exchanging crypto for other crypto or fiat currencies, or buying goods. Interestingly though, according to the source, the tax agency sent out many more letters last year, targeting 66,000 crypto holders.
Cryptocurrency regulations vary from country to country. Moreover, with the popularity of crypto growing, more countries might be adopting stricter regulations to prevent tax evasion or money laundering activities. In March, the tax agency in South Korea caught over 2,400 taxpayers who were evading paying taxes by hiding their income in crypto. In addition, in Canada, to prevent tax evasion, the Canadian Revenue Agency (CRA) last month requested client data of crypto trading platform Coinsquare.