1. Bitcoin is one of the major methods of payment in the whole country. Once the brand new and modern payment method has now become one of the common daily tools. The Bitcoin was introduced in 2008 and since then has increased in popularity almost drastically. The major reasons for the popularity of cryptocurrency are its simplicity, safety, and privacy.
2. The number of people using bitcoin or any other cryptocurrency is increasing daily. A number of industries accept Bitcoin and name it as one of the major payment methods. The payment with crypto is available almost everywhere. In some countries, you can proceed with the vacation payment or the flight ticket payment with Bitcoin. Not talking about the P2P transactions, which are very easy and secure.
3. One of the major industries which are actively using crypto is the gambling industry. Online casinos do not only accept crypto payment methods, but some of them have even switched to Blockchain technology completely. Crypto casino is one of the most popular types of online casinos and offers a variety of features, online games, and promotions.
4. Many countries have adopted cryptocurrencies, though some are more advanced with their usage than the others. One of the most developed countries, in terms of reception of the crypto payment method, is Spain. The number of cryptocurrency owners has quadrupled within a single year.
Spanish Tax Authorities take the stage
a) While Spain is now in the centre of attention due to the global pandemic and is becoming the second country after Italy with the massive COVID-19 outbreak, the country is definitely in trouble. All non-essential businesses, small entities, the major gathering spots have been shut down for at least a month until the situation is more or less stable.
b) People and businesses, as well as online shops and ordinary groceries and pharmacies, have switched to the online payment methods completely. This has happened as the cash is considered to be one of the biggest threats for virus transmission. Because of this, many companies now accept the crypto payment and transaction methods, which has contributed significantly to the popularization of the cryptocurrencies is the local market.
c) With the quarantine regime and the economic crises on the way, the Spanish Tax Authorities began sending out notices regarding the Bitcoin tax and the obligations of crypto owners. As mentioned above the number of crypto owners has drastically increased in the country. Last year the number was only 14,700, while today the tax authority is aimed at sending over 66,000 notices.
d) The notices are being sent despite the non-existence of the common framework for crypto taxation. Moreover, the Bitcoin is taxed to the capital gains tax. The tax ranges from 19% to 23%. The information regarding the tax is more or less updated, though the information regarding the amount of tax which applies to gains in excess of 50,000 Euros is yet uncertain.
e) The notices will not be sent to the crypto owners only, but to the real estate and foreign account holders as well. The total number of people receiving the notice will be about 7 million people. 66,000 out of the total number are the cryptocurrency owners. The next division applies to the real estate holders, more than 1.5 million people, which is twice as much as it was last year. Over 2.3 million people are foreign account owners. The number of those people has also increased by several thousand compared to last year.
f) While the crisis in the country hits severely and people might be losing their jobs, the Spanish Tax Authority still does not hold back on the additional charges. Not many people are comfortable with the news and some of them will definitely not be pleased.
g) The Authority began to send the notices on the 1st of April, last Wednesday and the closing date is the 30th of June. Spain is not in this alone. Countries like the US, Australia, and India also decided to tax the cryptocurrency owners. Though, unlike the crypto taxing in four countries, we are all together in the global pandemic and the economic crisis.