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The Crypto Regulation Digest: What’s New in Crypto Law?

UK's crypto taxation enforcement intensifies 

The United Kingdom's HM Revenue and Customs (HMRC) is intensifying its crackdown on undeclared cryptocurrency holdings. Recently, HMRC has mandated UK crypto investors to disclose any unreported holdings from the past 4 to 20 years. This move signifies a robust approach towards the regulations of cryptocurrency, aligning with global trends of increased financial transparency. 

Taxpayers are reminded of the accruing interest on unpaid taxes, emphasizing the urgency of correct and timely declarations. The inclusion of exchange tokens, like Bitcoin, along with NFTs and utility tokens, in the disclosure requirements marks a comprehensive sweep in the UK's effort to regulate crypto assets.

Spain's approach to overseas crypto holdings

Spain's Tax Administration Agency is also reinforcing its stance on the regulations of cryptocurrency, albeit in a less stringent manner compared to the UK. The agency has introduced Form 721, targeting individuals with crypto assets exceeding 50,000 euros stored abroad. This regulation, effective from January 1, underscores Spain's commitment to crypto legislation transparency. 

The submission window extends until the end of March, focusing on high-value foreign holdings. Additionally, those using self-custodied wallets are required to declare their assets through the wealth tax Form 714. Spain's nuanced approach balances the need for regulatory oversight while considering the varying scales of crypto investments among its citizens.

Brazil's new tax policy on foreign crypto earnings

Brazil is set to join the global trend in crypto legislation with a new policy targeting citizens' foreign crypto holdings. The bill, which has already passed in the Chamber of Deputies, is anticipated to receive approval from President Luiz Inácio Lula da Silva. Starting January 1, 2024, Brazilian residents earning over 6,000 Brazilian reals from exchanges outside the country will fall under this new tax regime. 

This aligns foreign-earned crypto revenues with domestic tax rates, ensuring a uniform approach to cryptocurrency regulations. Moreover, funds earned prior to this date will be taxed upon access, with an 8% tax on earnings accessed before December 31. This policy marks a significant step in Brazil's efforts to regulate the crypto market.