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European parliamentarians backs crypto legislation to combat tax evasion

The European Union Parliament has given its approval to a resolution that is not legally enforceable but encourages the use of blockchain technology in the fight against tax evasion and the coordination of tax policy regarding cryptocurrencies.

An announcement made by the European Parliament on October 4 said that 566 out of 705 members had voted in support of the resolution that had been first written by member Ldia Pereira. According to the legislative body, the resolution recommended that authorities in its 27-member states consider a “simplified tax treatment” for cryptocurrency users who are involved in occasional or small transactions. Additionally, the resolution recommended that national tax administrations use blockchain technology “to facilitate efficient tax collection.”

A “more appropriate choice,” according to the resolution, would be for the European Commission to determine whether or not the act of converting cryptocurrencies into fiat currency would constitute a taxable event depending on the location of the transaction. This request is related to cryptocurrencies. In addition to this, the policy would ask for an administrative reform to be made in order to improve the information sharing about taxes on cryptocurrency.

The Markets in Crypto-Assets, or MiCA, framework that the European Union’s policymakers have developed represents a significant step forward in their efforts to regulate the cryptocurrency industry. The bill will initially be presented to the European Commission in 2020, and its adoption by the European Council in 2021, with the intention of establishing a uniform legal framework for cryptocurrencies across all member states of the European Union. Many people believe that the policies will become operational in 2024.

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Reporter
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
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