More than 70% of Spanish crypto traders declared losses in fiscal year 2022, according to a new report.
According to the media Europe Pressthe claims were made by TaxCripto, an accounting firm that specializes in preparing tax returns for cryptocurrency holders.
Reported losses were significantly higher for those investing in crypto derivatives and futures: 91% of this group recorded losses.
Crypto tax returns have become mandatory in Spain, although the tax body has experienced difficulties implementing its tax plans in the past.
The agency previously sent suspected cryptocurrency traders written warnings that they must declare their cryptocurrency earnings or face heavy fines.
TaxCripto said that it had conducted the research using data from its own clients.
And he claimed that a “sharp drop” in cryptocurrency prices in 2022 “caused many cryptocurrency investors” to declare income losses for 2022.
However, this could indicate a quirk in the tax reporting system, as those who report losses may not have to pay tax on their holdings.
As such, the firm said that “many investors chose to realize their losses before the end of the year in order to reduce their tax bills.”
There was more information in the TaxCripto study, which also found that a whopping 85% of crypto transactions reported on tax returns were done on the Binance trading platform.
By contrast, only 10% were done on Coinbase, with less than 2% of transactions done on the Spanish Bit2ME platform.
And Bitcoin (BTC) advocates may be surprised to learn that only 10% of transactions were made with BTC.
Binance Coin (BNB) ranked first, with 18% of total reported transactions, followed by USDT with 11%.
By transaction type, the most popular (reported) trade type in Spain was staking (46%), closely followed by crypto-to-crypto exchanges (39%).
Cryptocurrency adoption appears to be on the rise in Spain, where a survey last year found that awareness of cryptocurrency among the general public had risen to 76%.