The need to tighten down on tax evasion in cryptocurrencies was emphasized by speakers at a Brussels tax symposium, which has raised the issue of crypto taxation higher on the European Union’s agenda. On December 7, various sources told The Block that the European Commission intends to adopt a draft of fresh cryptocurrency tax ideas.
According to Valdis Dombrovskis, European Commissioner for Trade, “digitalization reveals vulnerabilities in our tax structures while opening up new opportunities.” “We have already begun to deal with these issues.”
Dombrovskis referred to the upcoming proposal from the new revision of EU taxation guidelines from the European Commission “so that EU rules stay in line with evolving economies and include areas like crypto assets.”
In order to put new crypto tax regulations into effect in 2026, policymakers plan to discuss them during the course of 2023. The question of whether to adopt a single tax system for cryptocurrency across the bloc will be discussed. Though it is likely that the process will take some time because taxation is largely a matter for each member of the EU’s 27 member countries to decide.
One of the recommendations made in the Commission’s report for economic difficulties following COVID is the abolition of tax evasion using crypto.
The EU Parliament is set to pass a comprehensive framework for regulating crypto, the Markets in Crypto-Assets legislation, in February. Additional provisions aimed at combating tax evasion and money laundering will have to fit into that framework.
