The Spanish Ministry of Finance is advancing plans for a tax reform aimed at enhancing the oversight of cryptocurrencies and digital assets, according to various local sources.

The effort is part of a broader initiative to establish a robust regulatory framework for the cryptocurrency sector, which has seen exponential growth and widespread adoption in recent years.

El Economista reported in February that the proposed tax reform specifically targets the mechanisms of cryptocurrency transactions.

Such regulatory endeavors come against the backdrop of rising concerns over fraudulent activities linked to cryptocurrencies, exemplified by the recent seizure of $500,000 in crypto assets by the US from an Asian-based 'Pig Butchering' scam.