European Lawmakers Urge for Crypto Taxation, Use of Blockchain to Fight Evasion – Taxes Bitcoin News

Members of the European Parliament have called for “effective taxation” of crypto assets and “better use of blockchain” to counteract tax evasion. Both of these goals were achieved by the large majority that also supports a simple tax regime for small crypto traders.

The European Parliament adopts a framework for uniform taxation of cryptocurrencies within the EU

European legislators have supported a resolution that is non-binding and aims to implement blockchain technology into taxation. It also aims to uniformly tax digital assets within the block of 27.

The document, drafted by Lídia Pereira from the conservative Group of the European People’s Party, was adopted on Tuesday with 566 votes in favor, while only seven members of the European Parliament voted against and 47 abstained.

The resolution states that crypto assets should be taxed fairly, transparently, and effectively. The resolution also recommends that European Union authorities consider simplifying the tax treatment of transactions and traders who are occasional or very small.

They are asking the European Commission to assess the current taxation of cryptocurrencies by the EU countries and then identify national policies for fighting tax evasion via these assets.

Further, the resolution insists that crypto assets be defined broadly and that taxable events should be clearly defined. According to the text, this could be the conversion from crypto currency into fiat currency.

The cross-border nature of crypto trading makes it important to know where the taxable event would have taken place, the resolution notes, quoted by the EU Parliament’s press service. It suggests adding crypto assets to the directive governing administrative cooperation on taxation matters, part of the Union’s framework for the exchange of information.

According to the resolution, national governments should use every tool possible to collect tax efficiently. The resolution also recommends that blockchain be considered one of those tools. According to the document, blockchain technology can be used to improve taxation of mobile taxpayers by automating tax collection and reducing corruption.

The non-binding resolution comes after earlier this year the key institutions in the European Union’s legislative process – the Parliament, Commission, and Council – agreed on a sweeping proposal to regulate the crypto space in the bloc. Markets in Crypto Assets legislation (MiCA), will likely introduce licensing for crypto-company owners and provide protections to their customers. Also, consensus was reached regarding anti-money laundering regulations for cryptocurrency transactions.

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Are you positive that the EU’s member countries and institutions will apply the non-binding resolution passed by the European Parliament. Leave a comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image creditShutterstock. Pixabay. Wiki Commons. Hadrian

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