Continuing with our weekly interviews, the Bit2Me team held a virtual meeting with the renowned Spanish tax expert and lawyer Cristina Carrascosa; she who told us about the importance that she has Bitcoin and technology blockchain within the tax sector.
Cristina Carrascosa has a Law Degree from the University of Valencia, and has specialized in technological law with an interesting focus on cryptocurrencies and blockchain technology. In addition, Carrascosa has several master's degrees and specializations in Finance, Corporate Law and Information Technologies; The latter being the one that led her to enter the crypto ecosystem.
To date, Cristina Carrascosa is passionate about Bitcoin and blockchain technology; She is also a specialist in ICOs and co-author of the book “Blockchain: The Industrial Revolution”.
Likewise, the Commercial Director and CSO of Bit2Me, Javier Pastor, and the Director of Public Relations and Social Networks, Giovanny Montealegre, were present during this virtual meeting. Both, hand in hand with Cristina Carrascosa, invite us to learn about the union of these two worlds: Bitcoin and taxation; Although they may seem quite different, they have an important relationship with each other. So, stay with us and learn first-hand the current importance of law and legislation within the Bitcoin ecosystem and Blockchain technology.
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Cristina tells us a little about how she learned about Bitcoin and why she was captivated by this technology.
It was mid-2012 when Cristina Carrascosa learned about Bitcoin for the first time. Cristina tells us that she worked in a law firm at that time and that she had to write a post for the technology blog that she managed; So while looking for information to write her article, she came across Bitcoin for the first time. When reading about the technology, she did not fully understand it, but she did know that it was something very interesting and innovative; So, after writing her article, she remained interested in learning more about Bitcoin.
This curiosity, Cristina tells us, led her to contact several people related to the Bitcoin ecosystem and blockchain technology.
“I was so interested that apart from writing the post, I started contacting him on LinkedIn. PBecause at that time in Spain there was no way to contact so many people who did things with Bitcoin, But it was a bit of searching through forums and things like that.”
And it was then from there that he began to invest in technology. At first the investments were “laughable” to see how the technology worked and learn first-hand what Bitcoin was all about. A knowledge that led her to gradually immerse herself in this ecosystem; where she currently works as a collaborator in cryptographic projects of great importance and relevance to the community.
Taxation and cryptocurrencies in Spain
“It is in the spirit and not in the form of the law that holds justice together.”
With this phrase, Cristina explains to us that her work as a lawyer has been to be able to visualize the spirit of the laws and regulations in force in the country to apply them in specific cases that are not yet regulated under any legislation.
In her extensive experience as a lawyer, Cristina Carrascosa knows that the main function of laws is to monitor and protect values that are different for each society. For example, in Spain taxation has a strict and protectionist spirit towards the Public Treasury; but it also allows the evaluation and implementation of new projects without going beyond the margins of current laws.
Currently in Spain there are no laws that regulate Bitcoin and other cryptocurrencies; but rather that there are applicable regulations that work to control activities that link cryptoassets. In this sense, Cristina tells us that the Fifth Directive (AMLD5) is a European regulation aimed at preventing money laundering and the financing of terrorist activities. A directive that is applicable to companies and organizations that provide digital financial services with cryptocurrencies. For example, exchanges, wallet services and others must submit to the application of this law to provide their services; not because this law regulates cryptocurrencies, but because it does so based on the activity they are carrying out.
Likewise, Cristina tells us that there is a bill being studied aimed at preventing tax fraud. A bill that does include the regulation of all types of cryptoassets and activities and services related to them, but it is a project that has not yet been approved.
How are cryptocurrency activities regulated in Spain?
The AMLD5, which came into force in February, sets out the minimum standards that each member state of the European Union must adapt to their internal legislation to avoid the carrying out of illicit activities. In this sense Cristina Carrascosa explains to us that these regulations are applied depending on the activities that each organization or user carries out; and they do not have an application based on cryptocurrencies or the use of blockchain technology.
“European directives are a type of regulation that is issued, as its name indicates in the European Union, but until each member state translates it into internal law, it is not in force. That is, it is not valid.”
In this sense, until each member country of the European Union adopts and translates these directives into its own law, a cryptocurrency exchange or wallet service cannot be judged or sanctioned based on the regulations imposed by that law. Thus, although AMLD5 has been in force since February, Spanish law has not yet defined what requirements the nation will demand. In reference to this, Cristina explains to us that:
“What the directive establishes are the minimums; From there, member states can increase the requirements.”
Likewise, Cristina points out that in the definition of the conditions and directives that will be established in the laws of each member state, political interests have greater influence than the interests of the institutions that are going to apply and enforce those laws.
Vision of Spain and Europe regarding cryptocurrencies and blockchain technology
Cristina Carrascosa as part of the working group of the Blockchain Observatory It serves the function of analyzing various sectors within the crypto ecosystem to evaluate the development and trend of these sectors towards technology. Thus, Cristina explains to us that this is a function that she performs so that the European Commission can determine what legislation they need to establish or not.
Based on this, Cristina believes that they are very sensible actions that can allow current laws to adapt to cryptographic ecosystems. Or, failing that, that these actions allow new regulations to be established for specific and very specific issues.
“The (European) Commission wants to find out first, well, theoretically how this works. And in practice because the working group (of the Blockchain Observatory) has a working group of legal profiles like mine, but then it has a group of developers; then he has both visions.”
Likewise, from another point of view, Cristina explains to us that in Spain the functionality and adaptability of the legislation is very different from that of the European Commission. Cristina considers that Spain is not interested in knowing how blockchain or Bitcoin technology works; but rather that it is focused on aggressively pursuing tax fraud and tax collection.
For this reason, it is unlikely that regulations focused on understanding or improving the services offered through blockchain technology and cryptocurrencies will be implemented in Spain.
On the contrary, in Spain the implementation of controlling legislation is expected that imposes the responsibility of control on third parties; such as exchange and wallet services that must inform the state of the movements and operations carried out by users to avoid being sanctioned.
Continue reading: Bitcoin, Taxes, Treasury from the point of view of José Antonio Bravo
