Tax bitcoin and cryptocurrencies thanks to the blockchain? The new recipe of the European Union

The blockchain to tax cryptocurrencies – How to tax these weird things called cryptocurrencies? It’s a recurring question that each state has so far turned into its own sauce. It doesn’t taste the same at all from one country to another. For some, the bill can be steep. Except that this week the issue was at the center of the European Parliament’s political debates. So would we move towards common EU regulation? Quick overview of the main axes of this taxation, the consequences of which we may all soon suffer.

Cryptocurrencies, which taxable events?

Reshaping cryptocurrency taxation is on the agenda. The dossier was adopted by the European Commission with 566 votes in favor, 7 against and 47 abstentions, an overwhelming majority. Let’s go into the details.

The objective of the MEPs? Fight against tax evasion and streamlining of tax rules at European level. Because today every country has its own rules, more or less restrictive. In France, the tax of 30% on profits to prevail. With our German neighbors, however, after keeping his cryptocurrencies in his wallet for a year, they are no longer taxable.

A common European-wide cryptocurrency taxation policy soon?

The commission confirms that the conversion of cryptocurrencies into fiat currencies such as the euro remains the most viable taxable event. However, MEPs leave themselves the option of identifying other tax triggers. Furthermore, Parliament emphasizes the borderless nature of cryptocurrencies. In doing so, the Commission requests that the exchange of information on international taxpayers now contain a cryptographic component.

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Tax cryptocurrencies thanks to the blockchain, a sin?

Collecting taxes is hard work. But it turns out that these so-called useless cryptocurrencies had the good idea of ​​bringing in their suitcases a little revolution that makes sense. Blockchain. This famous blockchain enjoys a good reputation in the imaginations of our political leaders, unlike its brothers speculative character, cryptocurrencies. So why not use it?

Indeed, this is what our European rookies intend to do. Blockchain as a tax collection tool would automate currently manual processes. Via the blockchain, it would be easier limit corruption and Iidentify the assets held by alleven the most wandering of individuals.

The blockchain as a traceability tool to automate the taxation of individuals.
Blockchain, the traceability tool par excellence for tax collection?

The Commission intends to use all the resources of blockchain technology at the service of better traceability of individuals in order to be able to tax them better, wherever they are on the planet. However, it will be a question of finding the right balance by establishing a wisely measured control of fraud and not of a intrusive mass surveillance violate individual privacy and freedoms. But this is another debate.

We all know that the democratization of the sector will go through regulation. And this regulation will not be established without a panel of well-defined tax rules. However, they will bring with them a series of constraints that will undoubtedly reduce our current range of possibilities and multiply the phenomena of taxation. Certain freedoms we enjoy today will disappear in the coming years in favor of better control which, like the other side of the coin, will accompany the sacrosanct global democratization that we are all waiting for. So, good or bad news?

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