European Parliamenthas proposed a tax on cryptocurrencies as part of its updated 2023 budget to strengthen its financial situation and ensure that the EU can meet key policy objectives.
In the draft report of the budget proposal, cryptocurrency It was underlined that the market has grown rapidly since the 2008 financial crisis and the total crypto market capitalization reached 2 trillion Euros in May 2021.
The report commented that revenues from a tax on cryptoassets “will flow into the European budget as a new equity.” The report also underlined that “crypto-assets are increasingly seen as a real means of payment and part of investment strategies.”
According to the Budget Committee, regulation and taxation of cryptoassets at the European Union level is more effective than their national regulation due to their high mobility and cross-border capabilities.
A tax on crypto-assets will encourage the emergence of a harmonized tax framework for crypto-assets, be more consistent with the cross-border nature of the crypto-assets market, and encourage the adoption of tax standards at the global level.
In addition to imposing taxes on cryptocurrency transactions, the budget committee report recommended changes to the EU’s corporate tax policy and the introduction of taxes on carbon-intensive imports, and called for the creation of an EU “fair border tax” as additional ways to help generate revenue to finance the budget. .