Crypto Tax Blockchain – How to tax these wacky things called crypto? It is a recurring question that each state has so far turned to its own sauce. And it doesn’t taste the same at all from one country to another. For some, the bill can be steep. However, at the beginning of the week, the question was at the heart of political debates in the European Parliament. So are we going towards a common EU regulation? A quick overview of the main axes of this taxation, the consequences of which we may all soon suffer.
Cryptocurrencies, which taxable events?
Reformulation of the taxation of cryptoassets is the order of the day. The file was accepted by the European Commission with 566 votes “for”, 7 “against” and 47 “abstentions”, which is an overwhelming majority. Let’s get into the details.
The goal of MEPs? Fighting tax evasion and streamlining tax rules at European level. Because today every country has its own rules, more or less restrictive. In France the tax of 30% on profit prevail. With our German neighbors, on the other hand, after holding his cryptocurrencies in his wallet for a year, they are no longer taxable.
The commission confirms that converting crypto to fiat currencies such as the euro remains the most viable taxable event. However, the MPs reserve the opportunity to specify other tax triggers. In addition, the Parliament emphasizes the borderless nature of crypto. Thus, the Commission calls for the exchange of international taxpayer information to now contain a crypto component.
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Taxing crypto thanks to the blockchain, is it a shame?
Collecting taxes is hard work. But it turns out that these so-called worthless cryptocurrencies had the good idea to bring a little revolution that makes sense into their suitcases. Blockchain. This famous block chain enjoys a good reputation in the imagination of our political leaders, unlike its brothers and sisters in speculative nature, crypto. So why not use it?
Indeed, this is what our European debutants intend to do. Blockchain as a tax collection tool would automate processes that are currently manual. Through blockchain it would be easier limit corruption and D’identify the assets owned by eacheven the most wandering individuals.
The Commission intends to use the full resources of blockchain technology in the service of better traceability of individuals in order to be able to tax them as best as possible, wherever they are on the planet. However, it will be a matter of finding the right balance by establishing cleverly measured fraud controls, not intrusive mass surveillance violation of privacy and personal freedoms. But that’s another debate.
We all know that the democratization of the sector will go through regulation. And this regulation will not be established without a set of well-defined tax rules. However, they will bring with them a set of limitations that will undoubtedly reduce our current range of possibilities and multiply the phenomenon of imposition. Some freedoms we enjoy today will disappear in the coming years in favor of better control which, like the other side of the coin, will accompany sacredness global democratization that we are all waiting for. So, good news or bad news?
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