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The proposal for regulation in Spain: seizure of crypto for the payment of tax debts

News about crypto regulation in Spain: the Spanish Treasury is currently advancing a proposal for tax reform with the aim of authorizing the seizure of crypto at the time of fulfilling tax debts. 

According to information from local sources, the proposal also includes enabling the state administration to block such digital assets. Let’s see all the details below.

Regulation: Spain targets cryptocurrencies during debt settlement

As reported, the Spanish Treasury aims to exercise control and supervision over the cryptocurrencies held by taxpayers, proposing a revision of the current tax legislation.

The proposal provides that the Tax Agency, the national tax supervisory body, has the power to seize cryptocurrencies during the execution of taxpayers’ tax debts.

Presented to the European Union (EU) in 2021, the proposal seems to be close to implementation, with local sources indicating a quick action by the government to create the necessary conditions for the implementation of the reform.

Through a royal decree, the Spanish administration has declared electronic money entities as tax collection agents. 

Specifically, by assigning them the responsibility to implement embargoes on digital currencies and cryptographic assets of customers upon government request. This task, previously entrusted only to banks and traditional credit institutions, now extends to electronic money entities.

In addition, during this year, taxpayers will be required for the first time to declare cryptocurrency activities held abroad, information that will be crucial for the implementation of the new regulations once ratified. 

The data from tax declarations on cryptocurrencies from 2021 will also be used to collect tax debts when necessary.

However, the rapid implementation of these laws on cryptocurrencies poses a challenge for Spanish regulators. 

In fact, they will have to adjust their definitions and comply with the new tax framework and its rules. 

This considering the incompatibility with the concepts introduced in European regulations such as the MiCA, the regulation on cryptocurrency markets, and the EU general tax directive, which will come into effect in 2026 and presents a different definition of cryptocurrency.

The arrest of a “crypto-jihadist” in Barcelona complicates the regulatory framework

Recently, the Spanish police declared that the investigation on cryptocurrencies presents itself as a complex challenge, especially after the arrest in Barcelona of an individual identified as “crypto-jihadist.” 

Suspected of possessing various encrypted addresses connected to terrorist networks that finance ISIS, the man managed addresses connected to three international terrorism financing networks, according to the Spanish Ministry of Interior (MoI).

The MoI has highlighted the difficulty of security investigations due to the increasingly widespread use of cryptocurrencies as a financing tool by crypto-jihadist specialists. 

International cooperation has been emphasized as a crucial element to neutralize such networks, with Spanish authorities closely collaborating with partners such as the French DGSI, the American FBI, the Swedish S√ĄPO, and Europol.

Previously, the Spanish police had arrested five individuals suspected of financing jihadists through cryptocurrencies and planning terrorist attacks. During the operations, crypto-assets worth two hundred thousand euros were seized.

The announcement of the arrest in Barcelona highlights the catalytic role of the COVID-19 pandemic, indicating how terrorists have tried to adapt to cryptocurrencies as a response to mobility restrictions imposed in different countries. 

Currently, the arrested man is in custody and will be transferred to a temporary prison.

The strange statements of the Spanish government about X

From what has recently emerged about X (formerly Twitter), it seems that the Spanish embassy in Bosnia and Herzegovina has suddenly immersed itself in the world of cryptocurrencies in search of free tokens.

The official Twitter account of the Spanish government in Bosnia and Herzegovina has surprised everyone with some unusual statements on social media, abandoning the usual diplomatic language to actively participate in cryptocurrency projects. 

From research on airdrops connected to meme tokens like WEN, to involvement with smaller projects like SatoshiVM, Monad, the game Star Heroes, and Dymension, it seems that the embassy is seeking every single available token.

This surprising turn of events has generated perplexity among observers, especially considering the unusual nature of a government entity involved in such activities. 

In response to this behavior, the embassy declared via email that its Twitter account has suffered a security breach, taking measures to regain control of the account. 

The Ministry of Foreign Affairs and the national police cyber attack group have been informed of the incident, and the government is handling the matter confidentially.

The initial lack of official explanations has fueled speculation, considering the complexity of Twitter’s verification program and the frequent harmful acquisitions of official accounts. 

The incident recalls a recent breach of the official account of the United States Securities and Exchange Commission (SEC) , highlighting the distorted use of social media in institutional contexts.

Alessia Pannone
Alessia Pannone
Graduated in communication sciences, currently student of the master's degree course in publishing and writing. Writer of articles from an SEO perspective, with care for indexing in search engines.
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