New York Contemplates Imposing Crypto Taxation

In a bid to encourage the conscious and transparent use of cryptocurrencies, a group of legislators in New York has introduced bill #8966 to impose a 0.2% tax on transactions of cryptocurrencies and other digital assets, such as Bitcoin, Ethereum, and NFTs.

If approved by the State Assembly, this tax would come into effect on September 1 of this year. The proposed tax aims to fund school programs dedicated to prevention and intervention against substance abuse in schools in the northern part of the state.

The initiative in New York is part of a global trend seeking greater control and clarity in the management of digital assets. Similar moves are being made in Spain, where the government is intensifying the taxation of cryptocurrencies to achieve greater transparency and reduce tax evasion.

The tax would apply to platforms and entities that facilitate these types of digital operations with cryptocurrencies. This reporting obligation extends to foreign exchanges operating with Spanish residents. By 2025, Spain will implement regulations requiring asset exchange platforms to report all user operations in detail.

In Spain, measures are also being taken to combat the anonymous and illicit use of cryptocurrencies. Limits on privacy in cryptocurrency ATMs are being implemented, and the mandatory identification of digital wallets for transactions over 1,000 euros is being proposed. These initiatives align with the EU's DAC8 directive and the MiCA Regulation.

The National Securities Market Commission (CNMV) in Spain can now issue licenses and supervise crypto service providers, consolidating an environment for responsible and sustainable sector development.

New York has become an epicenter where financial tradition and digital innovation intersect, with a regulatory framework that seeks more than control, ensuring security, legality, and stability for those who invest and operate in the crypto ecosystem. The proposal to introduce a 0.2% tax on cryptocurrency transactions was made by Phil Steck, a Democratic member of the New York State Assembly.

The estimated annual revenue from the tax is $158 million. The bill proposes to modify the Corporate Tax Law by adding a new article to establish the crypto tax. The initiative is currently undergoing the usual legislative process, including review by committees, votes in the New York State Assembly and Senate, and approval by the governor.

Spain's initiatives consolidate an environment for responsible and sustainable sector development, aligning with the EU's DAC8 directive and the MiCA Regulation. The initiatives in Spain and Europe are part of a broader effort to ensure the transparency and security of cryptocurrency transactions, and to reduce tax evasion.

In conclusion, the proposed tax on cryptocurrency transactions in New York and the initiatives in Spain are significant steps towards regulating the digital asset market, ensuring transparency, and funding important social programs. As the use of cryptocurrencies continues to grow, it is essential that regulations are put in place to protect consumers, promote responsible use, and generate revenue for vital social initiatives.