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EU Bitcoin

EU Crypto Tax Plans Include NFTs, Foreign Companies, Draft Text Shows (coindesk.com) 12

The European Union plans to force crypto companies to give tax authorities details of their clients' holdings, according to a draft bill released to CoinDesk under freedom of information laws. From a report: The data-sharing law, based on a model from the Organization for Economic Cooperation and Development (OECD), is set to be agreed by finance ministers next week, and will allow tax authorities to share data within the 27-nation bloc. Commission officials have said the bill received unanimous acclaim at a meeting on Wednesday, though people familiar with the matter told CoinDesk that some finance ministers have not yet received formal approval from parliaments.

The bill, dated May 5, closely matches proposals made by the European Commission in December 2022, as part of a bid to stop EU residents stashing crypto abroad to hide it from the taxman. The commission would have to set up a register of crypto asset operators' by December 2025, bringing forward a previous deadline by one year, and the rules will apply as of Jan. 1, 2026. Controversially, the law -- known as the eighth directive on administrative cooperation (DAC8) -- still includes platforms for trading non-fungible tokens that can be used for payment or investment, and providers from outside the bloc that have EU clients.

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EU Crypto Tax Plans Include NFTs, Foreign Companies, Draft Text Shows

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  • by ukoda ( 537183 ) on Friday May 12, 2023 @04:03PM (#63517649) Homepage
    Putting aside my personal feelings about crypo this seems like an industry where many players will simple ignore the issue. Unless you are a crypto exchange dealing with EU banks then there is no reason for a crypto operator to have a physical or legal presence in the EU. They can deal EU customers and EU regulators can do nothing about that with crypto operators. Given crypto has no physical presence it is hard see how they could even go after EU based customers. Except...

    That leaves the only point of attack being when EU citizens exchange crypto with local currency. The way around that is to use crypo the way it was original intended, as a way to exchange goods and services. If you do work and are paid in crypo then use that to buy goods or subscriptions etc then you avoid EU taxes. The two things I don't like about crypo to the waste of power from mining and the rampant speculation. The rampant speculation has come from people seeing crypo as only having value as an investment, like shares, not a medium for exchange for real things. If crypo was widely used to exchange real things then it might dampen speculation making it more useful as a currency.

    Personally I will continue to see it as a high risk place to only put funds you can afford to lose.
  • So the EU is going to Tax Draft Text Shows ?

    Whatever they are.

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