Spain Limits Cash Payments; Should Startups Turn to Bitcoin?
On January 1, 2017, a newly proposed regulation to limit the circulation of cash will be activated in Spain. The proposal will effectively limit all cash payments to 1,000 euros, in a nationwide attempt to fight against money laundering and fraud. By nature, cash is anonymous. Such characteristic of cash has allowed it to develop into the preferred store of value for criminals and illicit traders. Thus, governments like the Spanish authorities are hoping to put an end to cash and attempt to replace current monetary systems with a digital network that is easier to manipulate. Currently,....
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Spain has entered the war on cash. According to El Mundo, the government plans to enforce a cash limit of 1,000 euros. The Spanish government says the ban comes amid a push to combat tax fraud and lower its deficit as per a directive put forth by the EU. The directive also outlines an immediate registration of tax information for about 80 percent of the population and a tightening of controls on deferred payments. The government claims this will limit the need to raise taxes. Other EU countries already have similar cash limits in effect. Notably low countries being Portugal with a maximum....
The European Commission has released an Inception Impact Assessment [PDF] considering transaction limits on virtual currency transactions as it steps up efforts in its fight against the financing of terrorism. On 2 February, 2016, the Commission published a Communication to the Council and the Parliament on an Action Plan to tackle terrorism financing. The Action Plan builds on existing EU rules to adapt to new threats and intends at updating EU policies that are in line with international standards. In a bid to deal with the controls of cash entering or leaving a country, reference is....
It's believed that Israel will neither be the first nor last country to impose such measures. Authorities in Israel on Monday has in put in place further restrictions on cash payments as a means to combat illegal activity and spur digital payments in the country. Since January 2019, Israeli businesses and consumers have been subject to limits on cash payments under the Law for the Reduction in the Use of Cash. It’s aimed at shifting the country’s citizens and businesses toward digital payments, allowing authorities to more easily track tax evasion, black market activity, and money....
Regulations or lack thereof can be tricky for businesses, especially if you are involved in Bitcoin startups or cryptocurrency related business. Bitcoin and other cryptocurrencies are relatively new introductions to the economy and there isn't enough clarity amongst people regarding its inner working and implications. The companies that are into Bitcoin based businesses are doing so based on their belief and the emerging trends which indicate that Bitcoin might just be the digital currency that future will embrace and appreciate. Some of them have been really lucky so far, some not so much....
Last week, Coinay announced that Spanish Bitcoin enthusiasts can use its vouchers to buy Bitcoin in their neighborhoods. Bitcoinist, followed the story further and interviewed Dolf Diederichsen, CEO & co-founder of Coinay, to learn about this Bitcoin voucher solution. Tell us more about “Buy Bitcoin in neighborhood”? Dolf Diederichsen: Coinay enables consumers in Spain to walk into a nearby shop (for example, a computer store) and purchase a Coinay Bitcoin voucher with cash. They can then go online to coinay.com and redeem the voucher, and get Bitcoins to their wallet. As we have partnered....