In a significant move, European Parliament lawmakers have voted overwhelmingly in favor of a continent-wide tax-reporting rule for cryptocurrency transactions.
With nearly 90% of votes supporting the measure, this decision underscores Europe’s commitment to combating fraud in the growing crypto market.
During a plenary session held in Strasbourg, France, on September 13, European legislators expressed their strong support for imposing strict tax reporting requirements on cryptocurrency exchanges. These rules, set to take effect in 2026, will equip tax authorities in Europe with the tools needed to closely monitor crypto-asset trading and income, reducing the chances of tax evasion.
European Parliament Approves Crypto Tax Reporting Rule
The European Parliament has given its overwhelming support to a continent-wide tax-reporting rule for cryptocurrency transactions. The proposal, introduced by the European Commission in December 2022, positions crypto-asset service providers to report transactions made by their European clients. This marks the third significant discussion on the framework, with the Commission finalizing its approach in May during the Economic and Financial Affairs Council meeting.
The Commission plans to modify the Directive on Administrative Cooperation (DAC) to enhance the sharing of tax-related information, emphasizing Europe’s commitment to transparency in the crypto sector.
Europe Advances Crypto Regulation with Tax Reporting Rule
The European Parliament’s endorsement of a tax-reporting rule for cryptocurrency transactions aligns with the EU’s ongoing efforts to regulate crypto assets. The Markets in Crypto-Assets (MiCA) legislation, introduced earlier this year, aims to close tax avoidance loopholes and provide a secure and transparent environment for crypto transactions in the EU.
Additionally, Europe’s launch of its first spot Bitcoin exchange-traded fund (ETF) further emphasizes its commitment to a comprehensive and secure crypto market. Named the Jacobi FT Wilshire Bitcoin ETF (BCOIN), it operates under the regulatory authority of the Guernsey Financial Services Commission (GFSC).
These developments showcase Europe’s proactive approach to ensuring crypto market integrity, fostering innovation, and boosting investor confidence. The strong support for the crypto tax reporting rule reflects the region’s commitment to staying at the forefront of the evolving digital asset landscape.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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