€9 Million DeFi Tax Charge Exposes Spanish Crypto Law Shortcomings

A recent €9 million tax charge levied against a Spanish trader for a DeFi collateral deposit highlights the ambiguity of digital asset taxation in Spain. This case exemplifies the challenges posed by the lack of clear regulations on decentralized finance (DeFi) operations, raising questions about legal clarity and economic fairness. The trader’s stablecoin loan, deposited as collateral without selling or profiting, was penalized by Spanish authorities despite not generating any capital gain. This raises concerns regarding the independence and transparency of tax appeals processes in Spain as well.