Crypto License in Spain

Cryptocurrency Regulations in Spain

At the moment there is no specific Crypto Regulation in Spain. It is important to note that cryptocurrencies are not recognized as legal tender and this status only applies to the euro as national currency under Law 46/1998 of December 17.

On February 8, 2018, the Spanish stock market regulator (CNMV) introduced a fundamental communiqué aimed at controlling the intense cryptocurrency advertising, and the regulation in this area has become clearer. The proposal defines the status of cryptoassets as "a digital representation of assets or rights that are transferred or stored electronically using decentralized registry technologies or similar approaches" The bill is expected to come into force 3 months after its publication in the Spanish National Gazette (B.O.E.).

In addition, it is worth noting that blockchain technology, which enables the distribution of digital information without the possibility of copying, will be able to find mass application in the Spanish legal sphere. Until recently, only notaries were authorized to validate legal documents, but blockchain platforms will be able to provide an alternative mechanism for identifying legal assets. A recent example is BBVA, a large bank based on a blockchain platform with the possibility of syndicated financing.

On February 17, 2022, the Circular containing rules governing cryptocurrency advertising came into effect. According to the new rules, the regulation of cryptoasset advertising in Spain is subject to certain standards and requirements. It should be clarified that for large-scale advertising projects, the CNMV requires 10 working days' notice. This advance notice must include all the details of the campaign, including dates, territory, and description. If this condition is not met, the CNMV may impose sanctions as stipulated by law. Violations of cryptoasset advertising regulations may result in fines, which depend on various factors such as advertising revenue and the scope of the violation.

On April 27, 2021, Royal Decree 7/2021 came into force, which confirmed the amendment of national laws relating to anti-money laundering and countering the sponsorship of terrorism, by the EU directive aimed at combating money laundering. These changes are aimed at the mandatory registration of cryptocurrency providers with the Bank of Spain. Following the decree, Spain began to follow the EU's Anti-Money Laundering Directive 5 (AMLD5). These proposed amendments also strengthened Spain's proactive measures in the fight against financial crime. These changes were made to national legislation following warning messages from the EU to amend its anti-money laundering measures.

Taxation of cryptocurrencies in Spain

In Spain, the use of digital assets is accompanied by the need to pay taxes on the profits made:

• Profit less than 6,000 EUR - the tax is 19%;
• For income between 6,000 and 50,000 EUR - the tax is 21%;
• If the income is more than 50,000 EUR - the tax is 23%.

Income from dividends and other types of participation in corporate property for non-residents is taxed at a flat tax rate of 19%.

In addition to purchase and sale transactions and dividends, cryptocurrency mining in Spain is also subject to taxation. Individuals or legal entities engaged in mining are required to register with the Spanish tax authorities.

In October 2019, the Law on Measures to Prevent Tax Fraud was passed. According to the law, it is necessary to notify the tax administration of their bitcoin, altcoin balances, and cryptocurrency transactions. In case of non-compliance with these requirements, a fine of 10,000 EUR is stipulated.