The Spanish Tax Office has opened fire against cryptocurrencies. With the announcement of the new Annual Tax Control Plan, the Treasury confirmed that one of the innovations it plans to strengthen in 2023 is the persecution of cryptocurrencies and virtual currencies. A new focus of action that is putting pressure on the holdings of these assets once again.

Treasury’s new priority. This is how the Tax Office’s campaign guidelines define it this year. Actions on ‘virtual payments’ will be particularly strengthened through the use of electronic payment methods established abroad, particularly through organizations that do not participate in national obligations.

They are not just referring to cryptocurrencies here, but are often referring to all these financial movements over the Internet, where they are managed by services far from Spain.

They will be able to take over cryptocurrencies. As announced in the BOE, the Treasury will encourage “activities to locate foreclosed crypto-assets.” The aim is to trace these cryptocurrencies to detect possible tax evasion and to seize them if necessary.

How is it going to be made? The process will be similar to the acquisition of shares. However, it is not an easy task as it requires the help of intermediaries.

Freezing escrow keys and confiscating wallets. Take the Tax Office’s Collections Area, where those tasked with analyzing these cases have determined that a taxpayer has a currency wallet that could be linked to criminal activity.

Based on the new Anti-Fraud Act’s new regulation on cryptocurrencies, the Treasury may request the seizure of custody keys from the exchange, freezing the wallet so that no further action can be taken and what is happening can be investigated. The Treasury may even request the transfer of funds from this exchange to the Treasury, if possible.

Customs Inspection Service for the digital economy. Customs control is often associated with inspecting packages, but they also have a service responsible for inspecting virtual transfers. This year, an investigation plan into the use of cryptocurrencies is being prepared to identify assets whose origins may be linked to criminal activities. In other words, Customs will focus specifically on analyzing virtual currency transfers between countries.

Cryptocurrency is not the only thing on the agenda. Another sector they will focus on in this year’s campaign is construction, particularly real estate rehabilitation and reform. Here the Treasury gives less detail, but predictably this is about help to improve energy efficiency.

They are aware that there is software to mask these movements. Focusing the discussion and research on crypto doesn’t mean there is a higher percentage of crypto-related scams, but Treasury points out that they are harder to track.

New regulations prohibit sales obfuscation software. Programs that ensure that transactions and purchases do not leave any traces in cash registers. Although cryptocurrencies such as Bitcoin leave transaction records, it is not always so easy for authorities to follow. Cryptocurrencies are presented as a major challenge for the Treasury in 2023.

Image | Jonathan Borba