European Lawmakers Urge for Crypto Taxation, Use of Blockchain to Fight Evasion

European Lawmakers Urge Crypto Taxes, Blockchain Use to Combat Evasion – Tax Bitcoin News

MEPs have called for “effective taxation” of crypto assets and a “best use of the blockchain” to counter tax evasion. A decision aimed at achieving both goals was approved by a large majority that also wants small cryptocurrency traders to enjoy a simpler tax system.

The European Parliament adopts a framework for uniform taxation of cryptocurrencies in the European Union

European lawmakers have backed a non-binding resolution outlining a framework that seeks to achieve the implementation of blockchain technology in taxation and uniform taxation of digital assets across the 27-person bloc.

The document, drafted by Lydia Pereira of the conservative group of the European People’s Party, was adopted on Tuesday by 566 votes, while only seven MEPs voted against it and 47 abstained.

The decision states that crypto assets should be subject to fair, transparent and efficient taxation. At the same time, it is suggested that the authorities in the European Union consider introducing a simplified tax treatment for occasional or small traders and transactions.

The authors call on the European Commission, the executive body in Brussels, to assess how EU countries currently tax cryptocurrencies and to define different national policies in combating tax evasion with these assets.

The resolution further insists on adopting a widely accepted definition of crypto assets and a coherent definition of what would constitute a taxable event. This could be the conversion of cryptocurrency into fiat currency, according to the text.

The cross-border nature of cryptocurrency trading makes it important to know where the taxable event will take place, notes the decision, which was reported by the press service of the European Parliament. It proposes adding crypto assets to the Directive Governing Administrative Cooperation on Tax Matters, which is part of the Federation’s framework for information exchange.

The resolution advises national administrations to use all available tools to facilitate efficient tax collection and points to blockchain as one of those tools. The document says the technology can help automate tax collection, reduce corruption and determine ownership of tangible and intangible assets, allowing better taxation for mobile taxpayers.

The non-binding decision earlier this year follows key institutions in the EU’s legislative process – Parliament, Commission and Council – agreed Its a comprehensive proposal to organize the cryptographic space in the block. Markets in Crypto Assets (Mica) The legislative package is expected to provide licensing for crypto companies and guarantees for their customers. A consensus has also been reached regarding anti-money laundering rules regarding cryptocurrency transactions.

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Do you think that EU member states and institutions will implement the non-binding resolution adopted by the European Parliament? Tell us in the comments section below.

Lubomir Tasev

Lubomir Tasev is an Eastern European technologist who likes to quote Hitchens: “Being a writer is what I am, not what I do.” Besides crypto, blockchain, and fintech, international politics and economics are two other sources of inspiration.

photo credits: Shutterstock, Pixabay, Wiki Commons, Hadrian

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