Will the European Union harmonize taxes on cryptocurrencies?

European policies are accelerating on the subject of cryptocurrencies

Since the beginning of the debates on the MiCA regulation, the European Union multiplies its positions vis-à-vis the Web3 ecosystem.

Earlier this week, MEPs debated about cryptocurrencies. A non-binding resolution was adopted to harmonize the taxation of crypto-assets and the fight against tax evasion at European level.

By voting with a majority for this text, MEPs are hoping for a debate between the various EU countries. Accordingly, the European Commission will analyze the different taxation policies of the Member States. At the same time, according to the European Parliament, the priority is to find common definitions to speed up political decisions :

” The resolution (then) calls for a clear and widely accepted definition of crypto-assets and a consistent definition of what would constitute a taxable event. »

Furthermore, this new document promotes a taxation system based on the conversion from cryptocurrency to fiat currency. In other words, the mode of taxation hoped for by the deputies excludes exchanges between crypto-assets.

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Using blockchain to fight tax evasion

The second theme addressed by the resolution is the question of revenue lost due to tax evasion. According to the press release from the European Parliament, blockchain is a tool that could prove effective in optimizing tax levies.

” Blockchain’s unique features could offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets »

Regardless of its economic virtues or consequences, the transformation of the tax system risks coming into conflict with the right to privacy. In other words, the identification of the assets of individuals by the blockchain, associated with the project digital eurocould increase surveillance of European property.

👉 Also in the news – The deployment of the digital euro finally dated – what will be its uses?

A shot in the dark for the European Parliament?

Despite the opposition that could arise from crypto-friendly countries, the latter have nothing to worry about. As its name suggests, the vote on a so-called “non-binding” resolution does not in any way bind the Member States to make arrangements.

From a legal point of view, if states like Portugal and Germany refuse to change their lax policies, no sanctions will be applied to them. Consequently, we are entitled to ask ourselves whether the resolution adopted by the European Parliament is of any real use.

In addition, this new text will be more of a support for future legislation voted by the institutions of the European Union.

👉 Read also – MiCA: the bad surprises that could further slow down the European crypto ecosystem

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Source : European Parliament

Timothy Bourbotte

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