The Spanish government approved on Tuesday a new draft law to prevent and combat tax fraud. While the bill is about tax fraud in general, it also affects cryptocurrencies.
Spain's new bill requires citizens of the country to report any use or hold of digital assets, even if transactions are made internationally or crypto assets are held outside the country. The bill also prohibits all cash transactions in excess of €1,000 in comparison with the country's previous limit of €2,500. The latter amount remains valid for non-commercial transactions.
Any business-related payments over €1,000 must be made electronically, which reinforces the tracking Spanish residents. With the advent of central bank digital currencies, financial tracking will become even easier for the country, and citizens will have less privacy and freedom.
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