Over 70% of Spanish crypto enthusiasts have reportedly encountered financial downturns within the fiscal year 2022. This figure remarkably inflates to 91% for those who have dabbled in crypto derivatives and futures. An accountancy firm named TaxCripto, specialising in crypto tax actions, brought these striking numbers to light.
This trend signifies an interesting ripple effect of Spain’s recent mandate requiring crypto investors to declare their earnings. It indicates that the new legislation may have spurred intentional losses to dodge the tax bullet. Investors strategically “materialise” their losses before the year’s end, aiming for a substantial reduction in the size of their tax bills.
Meanwhile, an unprecedented 85% of the crypto transactions mentioned in these tax returns occurred on the Binance trading platform, dwarfing figures from Coinbase and the Spanish Bit2ME platform at 10% and 2% respectively.
Surprisingly, Bitcoin, often considered the poster child of cryptocurrency, only accounted for 10% of these transactions. Binance Coin (BNB) and USDT came in first and second place, respectively, representing 18% and 11% of the crypto trades in the tax returns.
Noticeably, the transaction type dominating the Spanish crypto scene was staking, following closely behind were crypto-to-crypto trades. A steadily escalating wave in crypto adoption graces the Spanish lands with the public crypto awareness jumping to 76%.
However, is the rising tide in crypto regulations a blessing or a curse? On the one hand, they provide a sense of legitimacy and a safety blanket against fraudulent activities in the volatile crypto ecosystem. On the flip side, they could lead to detrimental consequences like sudden financial losses incurred by crypto investors to circumvent the tax obligations. Will such taxation strategies stifle or boost the thriving crypto market in Spain? This spectre of rigorous regulations certainly fosters an intriguing environment for crypto investors and enthusiasts alike.
Source: Cryptonews
