Investing.com – As policymakers around the world scramble to pass cryptocurrency regulation, the European Parliament has taken a step forward on one particular point.
Yesterday, MPs agreed on the need to tax the cryptocurrency sector. It was clarified that taxation should not only be efficient, but also transparent and fair.
Politicians are primarily targeting professionals, because private investors who only carry out small occasional transactions should be able to benefit from simplified tax treatment.
The non-binding resolution adopted provides that taxation applies when crypto-assets are converted into fiat currencies. However, what exactly is meant by crypto-assets still needs to be clearly defined in order to avoid any misunderstanding and room for interpretation in the interpretation.
At the same time, the deputies noted that tax collection should be automated and done directly on the blockchain. They believe that such a procedure would have many advantages:
“Enabling automated tax collection will help limit corruption and better identify ownership of tangible and intangible assets, allowing for more efficient taxation of taxpayers who transact across borders.”
By Marco Oehrl