Crypto tax talks are climbing the European Union’s agenda as speakers at a tax seminar in Brussels highlighted the need to crack down on cryptocurrency tax avoidance.
Several sources confirmed that the European Commission plans to adopt a new draft crypto tax proposal on Dec. 7. EU Trade Commissioner Valdis Dombrovskis pointed to forthcoming proposals from the European Commission for new EU tax guidelines.
Policymakers plan to discuss new rules on cryptocurrency taxation during 2023, with an eye toward implementing them in 2026. Discussions will include whether to implement a single EU-wide tax regime for cryptocurrencies.
Eliminating tax evasion using encryption technology is one of the recommendations made in the Commission’s report on post-COVID-19 economic challenges. The European Parliament will adopt a comprehensive crypto regulatory framework, known as the Cryptoasset Markets Legislation, in February. Additional provisions aimed at combating tax evasion and money laundering must comply with the framework.
