Spain has started to swim against Europe's current in terms of Bitcoin and cryptocurrencies. In fact, not only is not hostile to them, but the Popular Party is drafting a bill that hopes to start attracting companies that use technologies based on the block chain or opt for the offers of currencies initials (ICO) as a financing tool.
The final text of this project should be prepared during this year. But while they are preparing it, they have already given some clue as to what we can expect from it. For example, it could include possible tax rebates and other benefits, both for blockchain companies and for others specialized in cutting-edge technologies.
From the government party insist that this new framework they want to prepare will be aimed at "creating the right conditions for Spain to be the origin of new cryptocoins." Of course, they have also pointed out the importance of addressing some of the risks they entail, such as those related to the "speculative component" with which they are usually used.
Do not forget that the only thing we have at the moment is only a declaration of intentions and the first general ideas. Much can change from here to that the bill is drafted, so it can not be assessed in its entirety until we know all the details. But to get an idea, here is everything that has been said on the subject.
New rules to boost innovation
Teodoro García Egea, in charge of drafting the project and deputy spokesman in the Commission of Energy, Tourism and Digital Agenda of the Popular Party, dropped in an interview with Bloomberg some of the possible measures that are being considered, and assured that it is important for Spain to give Welcome to the Blockchain. As he said, it is a technology that could boost innovation in sectors such as finance, health and education.
As for the measures themselves, on the one hand we have possible tax reductions for small companies specialized in high-level technologies. This not only refers to those that work with the block chain, but also those that use other modern technologies such as 3D printing or Big Data.
There will also be specific rules for investments in cryptocurrencies, such as establishing an economic threshold below which the investments made with them do not have to be declared. To see the effectiveness of this measure we would have to see what is the threshold that ends up establishing, but this could affect the current way to declare to the Treasury our movements in Bitcoin and other cryptocurrency.
Closely related to this, Garcia Egea also said that they are working on a set of rules to protect investors in cryptocurrencies. By providing this security, they hope to be able to attract more investments for the ICOs, and with this even more companies could be bet on this method of financing.
"The digitization level for companies will be key, we hope to have the legislation ready this year," Garcia Egea said in the interview. "We want to establish the safest framework in Europe to invest in ICO."
To design this new legal framework, he said he intended to invite parliament experts in cryptocurrencies to give their point of view. They will also study how it is being done in other countries such as Switzerland, which today is considered one of the blockchain world capitals thanks to projects such as Crypto Valley.
If this new regulation materializes, Spain will be unmarked by other European countries that, as in the case of Germany, France, or Italy, do not seem very willing to support cryptocurrencies. Other countries, such as the United States, are also not rushing to find regulations for this type of technology, something that could favor countries that do.
In search of investment, talent and development
The Popular Party began to stage the implementation of this project a few weeks ago with the presentation of a proposal not of law. In it, they demanded to "take advantage of the advantages" offered by block chain technology. The proposal was presented by Rafael Hernando, parliamentary spokesman for the PP, and by Teodoro García Egea himself.
In this hearing, the spokespersons explained the main reasons why the Government intends to carry it out. As they said, these new technologies are attractive for their advantages, such as offering a lower cost and the absence of intermediaries in payments, or allow easier financing for companies in their initial phase of development.
García Egea also assured that this is why they wanted to make the necessary reforms "to attract investment, talent and specialized employment to lead this new digital transformation around international transactions and blockchain technology".
Despite preparing tax benefits for these companies, the PP also raises tougher controls around the technology. For this, they also said that they would study the risks in terms of tax evasion or money laundering that may arise from the use of this type of service.
"We know cases in which coins of this type end up being elements in which money comes from criminal activities, black money or tax evasion," said Hernando at the hearing. He also urged "to warn users of the speculative component and the risk of bubbles of cryptocurrencies, as well as to be prudent in their use".
It should be remembered that the Treasury is already studying the impact of cryptocurrencies, a step prior to a possible regulation that takes them out of their kind of legal vacuum. It remains to be seen if this regulation proposed by the Popular Party will take into account the results of these investigations. And also if all this accelerates a possible regulation that covers all aspects of the cryptocurrency and the blockchain, or if they are only patches for the companies.