Does Binance communicate our wallet adresses with the tax department in Spain?
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According to new terms and conditions that have to be accepted it states in one of the sections the following: By withdrawing or transferring Cryptoassets from your Binance Account to an External Wallet, the User declares and guarantees that you are the effective beneficiary of the External Wallet.
Now, I’ve been trying to get a clear yes or no answer from Binance support as to whether Binance will communicate our wallet adresses with the tax department in Spain however the answers that I get are rather vague. Or maybe I’m not explaining myself clear enough.
It is very important for me to know as to how far binance Spain will report our wallet adress from Binance and also external (cold) wallets that have been receiving crypto to Spanish tax offices as being the ¨users external wallet¨ and if this also includes cold wallets.
Because when I ask Binance support there is no clear answer to this.
If anyone has any links or answer to my questions that would be greatly appreciated.
Thanks in advance guys
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I have asked Binance a while ago as well. They said no unless authorities ask them. But things have changed. Laws are being prepared. Soon many countries will require all exchanges to give all clients information automatically, including cold wallet transactions! Coin Bureau made a video recently about it. Also I don’t about Spain but in France, Binance is registered as a bank. So they give all information already. I’m resident in France right now and the tax website knew I had a binance account.
Legally you have to pay tax if you send crypto to someone l=else’s cold wallet. Businesses have to report these transactions. Obviously most don’t. But governments want to see everything. So they will try enforce this to the exchanges: you will have to tell the exchange if you send crypto to yourself or someone else. They will tell the tax authorities. Authorities will try to map everything.
If you have big transactions then don’t use binance directly. There are solutions and many more will come. EU is dying and they’re just a cornered ugly beast biting at every hand
I do not know the specifiticies for Spain, but generally Binance (or most regulated financial institution for that matter) does NOT PROACTIVELY communicate anything to tax authorities – HOWEVER, if the tax authorities were to ask them, then they would definitely collaborate because otherwise they would lose risking their license to operate in that country.
Thanks for the info!
But I also asked them, as per when these new TERMS and CONDITIONS are applied, is that as per when they have updated them, or as per when we accept those terms. My concern is that because I have sent crypto to a cold wallet during that time, binance will use that info. However I did not accept nor was I informed of those changes. Not sure anyone will have an answer to this and I guess I will just have to wait and see. Wish Binance could be more specific considering that crypto is all about being decentralised…
I appreciate your time and answer!
Self custody means exactly that … they can know that Name ‘X’ is linked to PK ‘Y’ , but i doubt there will be any control beyond that … the simple fact that you can make 10 random hot wallets and move funds around between them is already a huge complication – If same name X made 3 wallets , after he moved the funds from Wallet “Y” it’s already a legal nightmare to prove that the second PK or third , belong to the same name X … if you remember, money laundering is based on moving assets through multiple banks or institutions that operate with money … add to all this the Open De-fi environment that’s totally unregulated where you can block funds for Stake or yiled farm and they disappear from the wallet and get blocked into a smart contract …
Take a look and you will not regret it! ❤️ https://youtu.be/Rp-ybQ1EWMw
What is external wallet is just payment to 3rd party …
Binance wants to be super-legit.
If they get a legal request for information from a government, are they going to risk their entire business to keep your info illegally?
Or are they going to hand over everything.
Assume they will hand over everything.
I see a lot of bullshit answers based on hearsay.
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Yes, they will report the address. It is you selling the widget to withdraw the widget. Whether that wallet is for you, something you buy, or something you’re gifting, it’s still YOU withdrawing it.
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Yes, they will report your ID Number, Name, Address, etc.
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The offical KYC/AML Legislation:
[https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L0843&from=EN](https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32018L0843&from=EN)
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Spain Requirements:
[https://kyc.io/country/es/spain](https://kyc.io/country/es/spain)
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Anywhere Binance DOT com operates, they must oblige by KYC/AML. Binance statement and purchase of entity to comply:
[https://www.outlookindia.com/business/binance-expands-its-crypto-roots-in-europe-after-france-and-italy-it-s-spain-now-news-208050#:~:text=Global%20Blockchain%20services%20provider%20Binance,by%20the%20Bank%20of%20Spain](https://www.outlookindia.com/business/binance-expands-its-crypto-roots-in-europe-after-france-and-italy-it-s-spain-now-news-208050#:~:text=Global%20Blockchain%20services%20provider%20Binance,by%20the%20Bank%20of%20Spain).
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