BITCOIN

Spain classifies digital currency mining as taxable activity

TAGs: Altcoins, Bitcoin, digital currency, Jasmine Solana, spain

Recognizing the potential profits digital currency will bring to the country, Spanish authorities have labeled bitcoin and altcoin mining operations as “economic activities.”

Spain classifies digital currency mining as taxable activityThis means that cryptocurrency miners and mining companies will soon be required to register and to pay tax—somewhere between 10 percent to as much as 47 percent of the value of the mined coins, Spanish language news outlet CriptoNoticias reported.

Mining has not been a taxed activity in Spain, but the National Directorate of Tax said “they have taken the view that mining is an economic activity.”

The government believes the tax will curb illegal activities related to digital currencies. However, it could also affect the profitability of mining operations, which could result in miners to quit.

Spanish economist and tax advisor Jose Antonio Bravo Mateu told the news outlet: “As the new regulation classifies cryptocurrency mining as a wealth-creating economic activity, the mining community should take advantage of any applicable tax deductions on expenses related to electricity consumption and mining equipment.”

Bitcoin casino promises ‘provably fair environment’

Many gambling have started expanding their payment processing options to include bitcoin. However, some sites have yet to adopt the so-called “provably fair system.”

Provably Fair systems are based on cryptographic hash functions. This technology is unique to bitcoin gambling that makes it impossible for a player or casino to cheat. Suspicious plays can be checked using a Bitcoin cryptographic has function, proving the results are indeed calculated properly and fairly, according to BetChain.

BetChain is a bitcoin casino that offers such “provably fair environment.”

“Data is converted into a hash string, which can be verified with an algorithm. If there was any interference in the game or any error in the payout, the hash will not be verified. As a player you can check the result of any bet yourself,” the company explained on its website.

Current bitcoin price and trade volume

The price of bitcoin dropped to $601.68 early Wednesday morning, with a trade volume of $40,664.36.

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