When the government agency in Spain which is responsible for regulating taxation and finance came up with a definition that Bitcoin should now be classified as an electronic payment system, a lot of stakeholders in the country were pleased. A lot of people think that this is important decision which could play a significant role in the Bitcoin economy in Spain.
Earlier this year in February, the country got its first Bitcoin ATM when Bbank, a company that distributes the Bitcoin ATMs, and PayMaQ the company that manufactures them in Spain partnered to install the first ever BTC ATM in the country. During that period there were no special laws for Bitcoin, so Bitcoin ATMs were regulated by the same laws as vending machines.
New Changes in Legal Definition of Bitcoin
There has been tremendous change in the legal definition of Bitcoin over the months and now the Bitcoin ruling has reinforced statements from various international legal bodies which are aimed to address whether Bitcoin is considered to be money under the laws of Spain. Various objections have come up regarding the legal status of the digital currency.
One such objection came from El Ministerio de Hacienda which says that Bitcoin cannot be considered electronic money or legal tender as according to it the digital currency cannot be defined as an ‘economically accessible object’ because it functions as an exchange medium. Nonetheless, the official ruling states that Bitcoin is a convertible virtual currency.
As was cleared by the official ruling that Bitcoin can be converted into Euros, dollars and other virtual or real legal tender at Bitcoin exchanges, the impression is that it is still right to use them for various transactions. A major issue came when clarifications were given for online gambling websites providing Bitcoin as an asset.
Bitcoin is Still a Popular Payment option at Gambling Sites
El Ministerio de Hacienda made it clear that Bitcoin cannot be considered electronic money or legal tender, its impact was likely to be felt in the Bitcoin gambling industry. A global disparity is being seen regarding the use of Bitcoin in online gambling; for instance, the US government shutdown online gambling caused gambling sites to turn to Bitcoin.
However, now, El Ministerio de Hacienda has made it clear that all gambling sites located in Spain, including those that only use Bitcoin must adhere to the ruling. The agency has cleared that online gaming businesses must now get a general gambling license along with an individual license.
El Confidencial came up with comprehensive report wherein it said that Bitcoin online gambling is growing in popularity in the country because this particular sector could avoid the Gambling Act by using Bitcoin.
To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com
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