European Lawmakers Urge for Crypto Taxation – European lawmakers have backed a non-binding resolution outlining a framework for implementing blockchain technology in taxation and taxing digital assets uniformly throughout the 27-strong block. The document, drafted by Ldia Pereira of the conservative Group of the European People’s Party, was approved by the European Parliament on Tuesday with 566 votes in favor, seven votes against, and 47 abstentions.
The resolution states that cryptocurrency assets must be taxed fairly, transparently, and effectively. At the same time, it advises that European Union authorities consider establishing a simplified tax treatment for occasional or small traders and transactions. The authors are requesting that the European Commission, the executive body in Brussels, first analyze how the EU nations are now taxing cryptocurrencies and identify the various national policies in the fight against tax evasion using these assets.
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The resolution also focuses on a broadly acknowledged definition of crypto assets as well as a consistent understanding of what constitutes a taxable event. According to the text, this could be the conversion of a cryptocurrency into a fiat currency.
The resolution notes, as stated by the EU Parliament’s press service, that because crypto trading is transnational, it is essential to determine where the taxable event would have occurred. It proposes including crypto assets under the directive controlling administrative cooperation in tax matters, which is part of the Union’s framework for information exchange.
The resolution encourages national leaders to implement all available methods to aid efficient tax collection, citing blockchain as one of these tools. According to the document, the technology might help to automate tax collection, limit corruption, and identify ownership of tangible and intangible assets, allowing for better taxation of mobile taxpayers.
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The non-binding resolution comes after the key institutions in the European Union’s legislative process – the Parliament, Commission, and Council – agreed earlier this year on a broad proposal to govern the bloc’s crypto space. The Markets in Crypto Assets (MiCA) legislative package is likely to include licensing for crypto firms as well as customer protections. Anti-money laundering rules for cryptocurrency transactions were also agreed upon.
