European Parliament Votes in Favor of Crypto Tax Resolution

In voting, 566 out of 705 members of the Parliament of the European Union supported a crypto tax-related resolution, proposed by member Lídia Pereira.

The resolution is not a binding one, meaning that the European Parliament only recommends that the 27 member-states introduce new crypto tax practices. These include more convenient taxation of those crypto traders who are only occasionally involved in small transactions, and assessing whether crypto to fiat conversion should be a taxable event based on the location of the transaction.

In addition, the Parliament recommends that blockchain technology is implemented to combat tax evasion. According to a notice the Parliament issued, blockchain tech could reduce corruption and automatize tax collection.

This piece of news is part of the European Union’s initiative to put in place a crypto regulatory framework that is consistent between all member-states. The related policies are expected to go into effect as of 2024.