Members of the European Parliament vote in favor of crypto and blockchain tax policies

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Last Updated on October 5, 2022 by Bitfinsider

Members of the European Union’s Parliament approved a non-binding resolution aimed at using blockchain to combat tax evasion and coordinate tax policy on cryptocurrencies.

The European Parliament announced on Oct. 4 that 566 of 705 members voted in favor of the resolution drafted by member Ldia Pereira. The legislative body recommended that authorities in its 27 member states consider “simplified tax treatment” for crypto users involved in occasional or small transactions, and that national tax administrations use blockchain technology “to facilitate efficient tax collection.”

In the case of cryptocurrencies, the resolution asked the European Commission to determine whether converting crypto to fiat would be a taxable event depending on where the transaction took place, calling it a “more appropriate choice.” Furthermore, the policy would request an administrative amendment to improve the exchange of information regarding cryptocurrency taxes.

The European Union’s policymakers have moved forward with their Markets in Crypto-Assets framework to regulate the crypto market. The bill, which was first introduced to the European Commission in 2020 and was adopted by the European Council in 2021, seeks to establish a consistent regulatory framework for cryptocurrencies across EU member states. Many people anticipate that the policies will go into effect in 2024.

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