Council of Ministers of Spain approves bill regarding crypto assets and VPN

New bill approved by the Council of Ministers in Spain requires citizens to comply with regulations that, among other things, demand citizens disclose their crypto currencies balance and all transactions they make, including dates and values. Also, VPN users are threatened with punished. This could change the landscape of online poker in the country with repercussions in the world market. Read the full article to know more.

Council of Ministers of Spain approves bill regarding crypto assets and VPN image

Council of Ministers of Spain approves bill regarding crypto assets and VPN

Aiming to impede tax evasion, the bill titled "Law on preventive measures to combat tax avoidance" was recently approved by Spain's Council of Ministers. It now has to follow the next step in the legal flow, which is the approval of the Spain's parliament. It imposes strict regulations that can make harder the lives of not only local grinders but also those who play in online rooms based in Spain and consequences to the market as a whole.

Spanish law to combat tax avoidance and VPN use

The bill purposes that it becomes a felony to "participate in Spain using any IP address masking technologies in gambling activities offered through non-licensed operators", which could result in fines up to € 100 000. Licensed operators are also expected to monitor and report to the authorities any illegal activities, forcing them to share information about players that might considered by the government to be involved with unlawful activities. Also, a blacklist should be published by the Spanish governmental body regarding gambling, aimed at non-licensed providers that offer services in their website to customers in Spain.

Spanish law to combat tax avoidance and crypto assets

The government intends to "oblige citizens to provide detailed information on balances and transactions carried out inside and outside of Spain" according to "Criptonoticias" publication. If the bill is approved, "acquisition, transmission, exchange, transfer, collections and payments" of crypto assets should be reported to the authorities, as well as informing the balance that Spanish citizens might hold abroad. Capital gains from the sale of crypto currencies by residents of Spain are taxed from 19% to 23% (for gains over € 50 000). This could severely affect grinders that operate offshore and process all their payments in crypto currencies.

How will this affect the landscape of online poker in Spain and in general? Probably, strengthening Spain's black market in crypto and gambling. We will stay alert for any advances in the topic and bring to you the most up to date news about it.