The European Parliament voted to use Blockchain technology to modernize taxation. According to the press release, the adopted resolution sets out a framework within which both the objectives of using Blockchain in taxation and uniform taxation of cryptocurrencies can be achieved. Here are the details…
European Parliament votes for cryptocurrency and blockchain
Members of the European Union Parliament are engaged in the fight against tax evasion. He is also trying to coordinate tax policy on cryptos. For this, Members of Parliament voted in favor of a non-binding resolution aimed at using Blockchain. In a statement dated October 4, the European Parliament said that 566 of the members voted in favor of the resolution originally drafted by member Lídia Pereira.
According to the legislature, the resolution made several recommendations to its officials in its 27 member states. He recommended using Blockchain technology “to facilitate efficient tax collection”. The resolution was accepted with 566 votes despite the opposition of 7 members. On the other hand, 47 votes abstained.
Using Blockchain for tax
Apart from that, it is pointed out that cryptocurrencies should be taxed in a fair, transparent way. For cryptocurrencies, the resolution called on the European Commission to consider whether converting cryptocurrency to fiat money would constitute a taxable event, depending on where the transaction takes place. He said it was a “more appropriate choice”. Additionally, the policy will request administrative change for better exchange of information regarding crypto taxes. The resolution added that member states of parliament can integrate Blockchain solutions into their tax programs. The statement contained the following statements:
Blockchain’s unique features could offer a new way to automate tax collection, limit corruption, and better define ownership of tangible and intangible assets, allowing mobile taxpayers to be better taxed. […] Studies should be carried out to identify best practices to use to improve the analytical capacity of tax administrations.
Regulator for cryptocurrencies
Policymakers in the European Union are trying to regulate the crypto market through the framework for cryptocurrencies (MiCA). As we have also reported as Kriptokoin.com, MiCA was first submitted to the European Commission in 2020. Then, in 2021, the European Council passed the bill. The bill aims to establish a coherent regulatory framework for cryptocurrencies among EU member states. Many expect the policies to take effect in 2024.
MiCA requires crypto companies to register with authorities, sufficient capital for stablecoins. It also requires platforms to provide clear and fair information to investors. The text for the law, after many years, is now almost complete. Overall, the bill evolved along with innovations in the industry.
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