February 5, 2023

The European Parliament proposes to use a tax on crypto assets to cover the costs of EU member states

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The European Parliament proposes to use a tax on crypto assets to cover the costs of EU member states

The Budget Committee of the European Parliament proposeduse the funds received from the taxation of capital gains, mining and cryptocurrency transactions to finance the expenditure items of national budgets.

The proposal of the MEPs states,that cross-border regulation and taxation of crypto assets at the EU level is more efficient than at the national level. Therefore, it is advisable to introduce a single European tax on crypto assets, the income from which will go to the general EU budget.

Member of the Board of the European Central BankFabio Panetta backed the budget committee's proposal and stated that digital asset tax revenues could be used to cover the environmental costs of cryptocurrency mining, especially those associated with bitcoin mining.

Preliminary tax options include taxes on investor capital gains, crypto asset transactions and mining.

Earlier, the EU authorities issued
additions to the anti-avoidance packagepayment of taxes, which states that any companies carrying out any transactions with cryptocurrency assets will be required to inform the fiscal authorities about this.