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Spain’s Government Prepares to Lure Blockchain Firms, ICO Issuers

Last Updated March 4, 2021 5:04 PM
Samburaj Das
Last Updated March 4, 2021 5:04 PM

The Spanish government is reportedly preparing legislation that includes possible tax incentives to lure blockchain companies into the country.

The People’s Party (PP) of Spain, the country’s ruling party, is weighing up legislation to specifically attract blockchain firms due to the technology’s potential in a number of industries including finance, education, and health, according to lawmaker Teodoro Garcia Egae. Speaking to Bloomberg, the lawmaker also pointed to ‘specific regulations’ that would make Spain a destination for entrepreneurs and firms to carry out initial coin offerings (ICOs) using blockchain(s).

The lawmaker, who is preparing the legislation, told Bloomberg :

“The level of digitization for companies will be key. We hope to get the legislation ready this year.”

The bill could also include tax rebates for businesses in areas including big data and 3D printing, the lawmaker added. In advance of the bill’s submission, Spain’s ruling party is also promoting a motion to summon blockchain experts to testify about the technology in the country’s parliament. The PP’s motion also includes plans to study other countries proactively researching or implementing endeavors in blockchain tech, like Switzerland’s government-backed Crypto Valley.

In an encouraging stance to foster and allow the development of cryptocurrencies, the lawmaker also hinted at the bill allowing provisions wherein a cryptocurrency investment, under a certain upper limit, needn’t be reported to the country’s regulator. In conjunction, Garcia Egea also revealed ongoing moves by Spain’s securities markets regulator to protect residents’ investments in cryptocurrencies.

He added:

“We want to set up Europe’s safest framework to invest in ICOs.”

Spain’s intended move to embrace the blockchain sector comes within a week of the government of Gibraltar undertaking its own move to regulate, and in effect legalize, ICOs in the country.

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