The EU, which has just adopted the MiCA regulations on April 20, intends to go further in the regulation of crypto activities throughout its territory. The European Commission has just validated a new directive imposing tax transparency to crypto businesses. Overview !
EU, focus on tax transparency
The city of new York, through DFS, recently decided to charge extortionate prices for obtaining a crypto license. The purpose being better regulation of virtual assets in the present as well as in the future.
I’India too was seduced by high crypto taxes long before New York. The country of the Maharajas has effectively introduced 30% capital gains tax during the 2022-2023 budget year. And at the same time, the local Ministry of Finance added to this a 1% withholding tax on each transaction.
On the European Union side, the time has comeestablishment of new tax guidelinescited bitcoinist. The European Commission undoubtedly wants establish transparency rules adapted to crypto businesses throughout its jurisdiction.
More specifically, they will apply to all Crypto Asset Service Providers (VASPs). It is to highlight that :
- these crypto companies must systematically declare the amount of their clients’ transactions;
- they will need to register in the state where they intend to operate;
- they are required to provide precise identity data to their customers;
- these suppliers also have an obligation to disclosure of user information to relevant authorities ;
- and these rules will enter in force on 1er January 2026.
Fair and efficient taxation
The press release published on the site of the Commission’s Customs Union Taxation Directorate is full of details about these new guidelines. Key information includes the objectives of this initiative: “ revenue for investments and public services, while creating a business environment in which innovation can thrive “.
We will also repeat this: The Directive will improve the ability of Member States to detect and fight against tax evasion, tax evasion and tax avoidancerequiring all EU-based crypto-asset providers – regardless of size – to report transactions from customers residing in the EU. »
Note that these new reporting obligations will be applied to cryptocurrencies and other digital currencies such as CBDCs. This last asset, it should be emphasized, is dear to Christine Lagarde and her entire team at the ECB.
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