European Parliament Supports Continent-Wide Crypto Tax Reporting Rule
Approximately 90% of European Parliament lawmakers voted in favor of a continent-wide tax-reporting rule for crypto transactions. Out of the attendees, 535 were in support, while 57 opposed, and 60 abstained.
European Crypto Tax Rules Aim to Counteract Fraud
During a plenary session in Strasbourg, France, European lawmakers expressed widespread support for stricter tax reporting obligations on crypto exchanges. The goal of these rules is to assist tax authorities in monitoring crypto-asset trading and income, ultimately reducing the risk of tax fraud. The framework was initially proposed by the European Commission in December 2022 and would require crypto-asset service providers to report transactions made by their European clients.
The recent plenary session marked a significant milestone for the framework’s progress, following previous discussions and the establishment of its general approach by the Commission.
Europe Continues to Work on Regulating Crypto
In addition to the crypto tax framework, the European Union is engaged in ongoing discussions about regulating crypto assets. EU finance ministers have already approved legislation known as Markets in Crypto-Assets (MiCA) to address tax avoidance loopholes. This legislation came into effect in July.
Furthermore, Europe recently launched its first spot Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam stock exchange. The ETF, named Jacobi FT Wilshire Bitcoin ETF with the ticker symbol BCOIN, operates under the regulatory authority of the Guernsey Financial Services Commission (GFSC).
Hot Take: Europe Takes Steps Towards Crypto Regulation
The strong support from European Parliament lawmakers for continent-wide crypto tax reporting rules showcases Europe’s commitment to regulating the crypto industry. By imposing stricter tax reporting obligations, the aim is to prevent tax fraud and ensure transparency in crypto-asset trading. This move aligns with the ongoing discussions and legislation surrounding crypto regulation within the European Union. With the launch of its first spot Bitcoin ETF, Europe continues to make progress in providing regulated investment opportunities for crypto assets. These developments signal Europe’s proactive approach to managing the challenges and opportunities presented by cryptocurrencies.
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