• Home
  • Bitcoin News
  • Blockchain News
  • CBDC News
  • NFT News
  • New to Crypto?
  • About
  • Contact
Facebook Twitter Instagram
Todayq News
  • News
  • Bitcoin
  • Metaverse
  • NFT
  • Blockchain
  • New to Crypto
  • Contact
Twitter Facebook Instagram LinkedIn
Todayq News
News

Crypto exchanges could be subject to disclosure of every transaction in Europe

By Samvidha Sharma9 December 2022, 05:31 PM
Crypto exchanges could be subject to disclosure of every transaction in Europe

In a new document released by the European Union, the agency seeks to advance its tax mechanism for crypto.

The document features a directive that mentions that companies of any size processing crypto transactions for customers in the EU will be required to report these for tax purposes under the proposed legislation. The policy is an addition to a broader package of anti-tax evasion measures.

As per the proposed policy, even non-European crypto-asset operators will need to report transactions if they have clients who are EU residents. The companies would also be required to provide personal data to the tax authorities about their users, including their address, place of birth, etc.

Additionally, the companies would be required to send data concerning the transactions, including the amount that person spent on buying crypto or how much the receiver gained on selling them. 

The policymakers intend to oblige to report income through crypto investments to help the member states accurately understand the taxes they are owed. They are projecting an additional income of €2.4 billion ($2.53 billion) through it.

According to the EU, reporting tax figures would also help the industry. The proposal states that “transparency on income earned by crypto-asset investors would improve the playing field with more traditional assets.”

It also claimed that implementing the tax rules would cost the EU an initial €300 million and about €25 million annually. For the affected businesses, it would have a limited impact on small and medium-sized companies considering that all the information is already available. 

The Council’s summary of the impact assessment also mentioned that while the initiative will bring in compliance or implementation costs, it will be more advantageous to SMEs to have a single set of rules instead of a potential patchwork of reporting requirements across the EU. 

However, crypto advocates fear that the proposed policy would burden firms operating in the region. 

Simon Polrot, President of the European Crypto Initiative, opined that the data the providers have been told to submit is highly significant and complex to calculate. He also asked if the tax authorities could process the information, as the estimated cost for service providers seems underestimated. The mass of information to be produced and sent will be enormous. 

The feedback on the adopted act is open for at least eight weeks, following which the responses will be presented to the European Parliament and Council as part of the legislative debate. The EU is finalizing its crypto regulation – Markets in Crypto Assets (MiCA), which would establish a framework for its members. 

Crypto European Union Tax
Share. Facebook Twitter LinkedIn Telegram WhatsApp Reddit

Comments are closed.

Must Read

The entertainment industry is welcoming Web3 with open arms

Survey: Crypto is currently the second-most owned asset by women after cash

Data: 59% of BTC holders are enjoying profits, and only 38% are running in loss

Report: Boomers are the most cautious Crypto investors

Instagram
The price of Bitcoin, after going through what the industry calls one of the worst bear markets, has been surging. Data reveals that the increasing prices have helped both short-term and long-term investors to profit.
A recent report released by eToro called the “Retail Investor Beat” indicated that although traditional asset classes struggle to encourage greater adoption among women, cryptocurrencies appear to be more successful. The eToro team surveyed almost 10,000 global retail investors across 13 nations.
The crypto industry is continuously expanding, and the events that occurred in the past year gave investors major shocks. However, they also highlighted the need for having a clearer and deeper understanding of the crypto space to navigate safely and securely.
“Full-time” developers, defined as those who contribute to 76% of Github commits, climbed by 15.2% to over 7000. In comparison, “one-time” builders decreased by 6.2% to over 3,500 over the same period between December 2021 and December 2022, according to a Jan. 16 report from Electric Capital.
Crypto by TradingView
Twitter Facebook Instagram LinkedIn
  • About
  • Careers
  • Advertise
  • Privacy
All rights reserved by Todayq Technologies PVT. LTD.

Type above and press Enter to search. Press Esc to cancel.