The status of cryptocurrencies in many jurisdictions is still uncertain, with authorities yet to establish a clear and definitive line on how to treat what is still a relatively new asset class.

In Spain though, holders of cryptocurrencies have been left in no doubt as to what they should do, with the country’s tax agency, the Hacienda, sending a letter reminding them that all transactions should be included in their tax statements.

It is not the first time that such investors have been reminded in this way, but the issue has gained greater importance for the treasury after the massive rise that Bitcoin and other virtual currencies have received in recent months.

Coinciding with that has been a massive uptake in the number of retail outlets that now accept such alt-currencies as an accepted method of payment. Online casinos are a case in point.

The casino bonuses in, which can be found here also details just some of the operators that now offer the as a valid method of payment and withdrawal.

How an individual in Spain is taxed, depends on the activity a taxpayer performs using cryptocurrency.

A trader, for example, is taxed on any capital gain – the difference between the value at which their portfolio of crypto assets was acquired and that at which it was sold.

Any capital gain must be included in a Personal Income Statement and will be taxed anywhere between 19% and 26%.

One key point to note, however, is that, from the viewpoint of the authorities, a gain is only crystallised when it Is converted into a fiat currency like the euro. If an individual decides to leave their cryptocurrencies in a virtual wallet, then any gain is purely notional and not subject to taxation.

Meanwhile, any interest paid by online platforms where cryptocurrencies are deposited will be considered as savings in the Personal Income Statement and taxed at the prevailing rate.

Another activity that needs to be considered for the purposes of Spanish taxation is mining – the use of computers to solve mathematical problems and, in doing so, to validate and process blockchain transactions.

This is considered an economic activity, meaning that the miner will have to pay taxes on the profits associated with it, although they are able to deduct legitimate expenses associated with it.

To carry out such activity, miners are required to register with the Spanish fiscal authorities first.

Certain regions of Spain also have a Wealth Tax system in place which applies to worldwide earnings. For example, in Catalonia, it applies to all those with annual earnings above €500,000, in Comunitat Valencia €600,000 and in Andalusia, the threshold is €700,000.

And the value of cryptocurrencies must be considered when determining the value of the wealth oi an individual.

Finally, in the event that Bitcoin or another cryptocurrency is exchanged for another virtual currency, then taxes will need to be paid as if there had been a capital gain as two operations had taken place – the sale of the first cryptocurrency and the buying of the new one.