Crypto must comply with rules, especially in tax field

The EPP Group calls for a new legal framework for cryptocurrencies. “Crypto-assets such as Bitcoin are here to stay. In recent months, we have seen an avalanche of news about the rise and fall of cryptocurrencies. We are not only facing an expanding market, but also a rapidly and continuously changing one. However, to be trusted, cryptos must, like any other financial service, comply with rules, especially in the field of tax”, explained Lídia Pereira MEP, ahead of the European Parliament debate and vote on her Report on the issue.

Her Report says that crypto-assets must be subject, at Member State level, to fair, transparent and effective taxation that assures consumers and investors of a safe and secure environment for their financial options. For this aim, Pereira calls for a clear and broadly-accepted definition of crypto-assets and of what would constitute a taxable event.

Fighting against tax evasion is also one of the top priorities. “We all agree that cryptocurrencies must not be a vehicle to evade due taxes. If it is true that we should not tax for the sake of taxing, it is no less true that we need to prevent legal voids from being spaces of opportunity for fraud and tax evasion”, said Pereira.

For the EPP Group, the blockchain protocols used to exchange cryptos are forward-looking technologies. These blockchains allow to store and exchange value on the internet without a centralised intermediary like a bank. “As their database contains the history of all transactions made between its users since its creation, we firmly believe it could offer a new way to automate tax collection, limit corruption and fight money laundering”, stated Pereira.

The Resolution also invites authorities to consider a simplified tax treatment for occasional or small traders and small transactions.

“Of course, taxing cryptocurrencies cannot mean strangling taxpayers with more bureaucracy or impeding innovation. That is why we call for a simplified tax treatment for occasional or small traders and small transactions”, stressed Pereira.