The Agencia Estatal de Administración Tributaria – a Spanish taxation authority, responsible for the intake of governmental revenue, has recently given an official statement that Bitcoin is to be categorized as an online payment currency. This is a major change in the way Bitcoin is to to be used by businesses in Spain.
The decision is a continuation of a regulation passed in May 2014, when the AEAT announced that it would place more strict control over online money transaction companies, due to suspicion of criminal affairs.
Bitcoin’s Legal Status Changed
This controversial ruling renewed the international dispute on defining the economic nature of Bitcoin. Is it a legitimate currency or only online usable money?
In Spain, Bitcoin is considered a legitimate tender when it comes to the Government being able to monitor the transactions made with Bitcoin and whether there are any illegal activities. El Ministerio de Hacienda (The Ministry of Finance), however, has a different position on the issue, stating that Bitcoin cannot be accepted as a legal tender or an online currency. The topic has created a major debate in the political and online communities in Spain.
Furthermore, the Agencia Estatal de Administración Tributaria described Bitcoin as a mere exchange medium, as it has no physical representation, and therefore is not ‘economically accessible object’. Despite the opposite statements expressed even inside the Spanish governmental authorities, Spaniards can now exchange it for other, legitimate currencies. It can be converted into dollars, pounds, euros and many other physical or virtual currencies.
More Strict Regulations for Gaming Websites
The gambling industry in Spain has already been affected by the new ruling. All gambling websites, which now operate under Spanish jurisdiction, are obliged to follow the new ruling.
The difference between it and other international gambling markets is becoming greater each day. For example, the prevailing position of the United States’ Government across many states is to create more strict regulations concerning the online gambling industry and the available payment options. Pressured by the suffocating regulations, many US online operators turn to Bitcoin and use it as a currency, which requires no money transaction mediums. Others stay away from it, due to the uncertain future this online-only currency has.
The Ministry of Finance reminded all online gaming operators that they now need two types of licenses – an individual and a standard one. For the past few months, Bitcoin has gained considerable popularity in the online gambling sector, as any gaming operator could avoid following the rulings of the Gaming Act. However, with the new ruling, all economically relevant currencies and objects of any kind, including Bitcoin, are now being monitored and fall under the Gambling Act in Spain.
Bitcoin is a decentralized digital money system called “cryptocurrency”. It is said to have been created by Satoshi Nakamoto in 2009 and is made of an unbreakable code, which no one else has yet been able to explain how it was written.
