Spain May Start Accepting Mortgage Payments in Cryptocurrency
Spain’s opposition party Partido Popular has introduced a bill to allow payments on mortgages in cryptocurrency and to create a national council on crypto assets to analyse the implications of using cryptocurrency and blockchain in that country.
According to the text of the Law on Digital Transformation, people will be able to use cryptocurrency to pay mortgage loans, and the representatives of the real estate sector will be able to invest cryptocurrency in mortgage pools.
For banking structures, it is envisaged to use blockchain to manage mortgages, insurance and simplify the compensation payments.
According to Christina Karraskos, CEO of the law firm ATH21, the adoption of the bill promotes the recognition of cryptocurrencies as a means of payment.
She noted that for the implementation of the law, it is necessary to change the legal category of cryptocurrencies: from the current “means of exchange” status to “means of payment.”
The bill also proposes the creation of a national crypto asset council to provide advisory services. It will include representatives from the General Directorate of the Treasury, the National Commission for the Securities Market and the Central Bank of Spain.
The council will have to study and analyse the implications of using crypto assets and other services via blockchain, assess the adoption of blockchain in government and create the mechanisms to detect fraud and tax evasion.
Any cryptocurrency transactions under the law will be taxed in the same way as any monetary transactions.
According to the bill, cryptocurrencies or tokens issued through an initial coin offering will be considered negotiable securities. In addition, investments of less than €6,000 through the ICO will not have to be reported to the authorities.