The post Spain Weighs 47% Crypto Tax, Risking Mass Investor Exodus appeared on BitcoinEthereumNews.com. The Sumar party has proposed amendments to tax crypto gains as general income, raising rates to 47%. Economists warn this punitive measure will drive capital flight to tax-friendly jurisdictions. The proposal contrasts with recent moves to separate Bitcoin from broader crypto asset taxation. Spain’s governing coalition is pushing for a drastic increase in cryptocurrency taxes. The Sumar parliamentary group has introduced amendments that would tax crypto profits at a top marginal rate of 47%. This proposal seeks to reclassify digital asset gains from “savings income” to “general income.” This legislative move aligns with the European Union’s broader push for clarity under the Markets in Crypto Assets (MiCA) framework. However, analysts warn the specific tax hikes could damage Spain’s competitive standing. Related: Stablecoins Remain Small in Euro Area, But Global Expansion Raises ECB Concerns The Proposal: Reclassifying Crypto as General Income Currently, crypto gains in Spain are taxed as savings. This structure caps the tax rate at 28% for most investors, rising to 30% for the highest earners. The new amendment would strip this classification. Instead, profits would be taxed as general income, pushing the top rate to 47% for high-net-worth individuals. Additionally, the proposal seeks to tax corporate crypto profits at a flat 30% rate. Beyond tax hikes, the amendments require the CNMV (Spain’s securities regulator) to establish specific risk classifications for crypto assets. This would add another layer of compliance for local investors. Economist Warns of Capital Flight: ‘Investors Will Flee’ Market reaction has been swift and critical. Economist José Antonio Bravo Mateu warned this strategy will backfire. He noted that self-custody wallets allow investors to hold assets outside immediate government reach. If the tax burden becomes punitive, he argues, wealthy holders will simply relocate. “The only thing these measures achieve is to make holders residing in Spain think… The post Spain Weighs 47% Crypto Tax, Risking Mass Investor Exodus appeared on BitcoinEthereumNews.com. The Sumar party has proposed amendments to tax crypto gains as general income, raising rates to 47%. Economists warn this punitive measure will drive capital flight to tax-friendly jurisdictions. The proposal contrasts with recent moves to separate Bitcoin from broader crypto asset taxation. Spain’s governing coalition is pushing for a drastic increase in cryptocurrency taxes. The Sumar parliamentary group has introduced amendments that would tax crypto profits at a top marginal rate of 47%. This proposal seeks to reclassify digital asset gains from “savings income” to “general income.” This legislative move aligns with the European Union’s broader push for clarity under the Markets in Crypto Assets (MiCA) framework. However, analysts warn the specific tax hikes could damage Spain’s competitive standing. Related: Stablecoins Remain Small in Euro Area, But Global Expansion Raises ECB Concerns The Proposal: Reclassifying Crypto as General Income Currently, crypto gains in Spain are taxed as savings. This structure caps the tax rate at 28% for most investors, rising to 30% for the highest earners. The new amendment would strip this classification. Instead, profits would be taxed as general income, pushing the top rate to 47% for high-net-worth individuals. Additionally, the proposal seeks to tax corporate crypto profits at a flat 30% rate. Beyond tax hikes, the amendments require the CNMV (Spain’s securities regulator) to establish specific risk classifications for crypto assets. This would add another layer of compliance for local investors. Economist Warns of Capital Flight: ‘Investors Will Flee’ Market reaction has been swift and critical. Economist José Antonio Bravo Mateu warned this strategy will backfire. He noted that self-custody wallets allow investors to hold assets outside immediate government reach. If the tax burden becomes punitive, he argues, wealthy holders will simply relocate. “The only thing these measures achieve is to make holders residing in Spain think…

                                                                               Lawmakers in the US House of Representatives and Senate met with cryptocurrency industry leaders in three separate roundtable events this week.                     Members of the US Congress met with key figures in the cryptocurrency industry to discuss issues and potential laws related to the establishment of a strategic Bitcoin reserve and a market structure.On Tuesday, a group of lawmakers that included Alaska Representative Nick Begich and Ohio Senator Bernie Moreno met with Strategy co-founder Michael Saylor and others in a roundtable event regarding the BITCOIN Act, a bill to establish a strategic Bitcoin (BTC) reserve. The discussion was hosted by the advocacy organization Digital Chamber and its affiliates, the Digital Power Network and Bitcoin Treasury Council.“Legislators and the executives at yesterday’s roundtable agree, there is a need [for] a Strategic Bitcoin Reserve law to ensure its longevity for America’s financial future,” Hailey Miller, director of government affairs and public policy at Digital Power Network, told Cointelegraph. “Most attendees are looking for next steps, which may mean including the SBR within the broader policy frameworks already advancing.“Read more