Spain’s New Crypto Law: Data Reporting & Seizure

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Spain is set to introduce sweeping new crypto regulations aligned with the EU’s DAC8 directive, expected to take effect on January 1, 2026. These rules will require crypto service providers to submit detailed user data—transactions, wallet balances, and account information—to the Spanish Tax Agency. Providers across Spain and other EU jurisdictions must comply, escalating reporting standards and enhancing fiscal transparency.

A major consequence of this regulation is the authority it grants to Spain’s tax agency to seize unpaid digital assets—including cryptocurrencies—if taxes aren’t settled. This empowerment marks a significant shift, expanding asset seizure capabilities beyond traditional bank accounts.

Moreover, bilateral data exchange with other EU countries (and those under cooperation agreements) will make it harder for Spanish residents to conceal crypto holdings abroad. The Spanish Council of Ministers has submitted the directive to Parliament, aiming for implementation ahead of the EU deadline.

While the government claims these changes will combat tax evasion and yield an estimated €2.4 billion annually, privacy advocates worry about data overreach and potential bureaucratic burdens on service providers. Balancing transparency with user privacy will be central to Spain’s rollout.

Discussion Question:

How can Spain’s new crypto law effectively deter tax evasion while protecting user privacy and maintaining a balanced regulatory environment?