Spain is proposing a substantial tax increase on cryptocurrency profits, raising concerns among industry experts and potentially impacting the country’s standing as a crypto hub. The proposed 47% tax rate would impact all digital asset income, a significant jump from current savings-bracket rates. This move comes after the Spanish government issued over 620,000 warning notices to citizens regarding undeclared crypto assets in 2024. This aggressive approach might drive investors towards jurisdictions with more favorable tax conditions. Concerns about capital flight and market instability are also growing as experts warn of potential negative consequences for Bitcoin (BTC) and Ethereum (ETH).