- The members of parliament adopted a resolution calling on member states’ coordination for crypto assets’ taxation.
- The resolution also suggested the adoption of blockchain technology for more transparent and efficient tax collection.
- The crypto market noted the recovery of more than $47 billion in the last 24 hours after days of sideways movement.
Crypto regulation is undoubtedly one of the bigger concerns for governments worldwide, with crypto taxation equally a grave concern. While many other countries have already implied taxes on crypto transactions, the European Parliament is finally taking its first step in that direction.
EP brings taxes to crypto
The European Parliament (EP) members voted on a non-binding resolution on October 4, which sets out a framework for the crypto market. Receiving over 91.3% votes in favor of its passing, the resolution observed only seven votes against it.
This resolution works two ways within the crypto market, first by targeting crypto assets for uniform taxation and secondly by employing blockchain technology for executing taxation services.
In the case of digital asset taxes, the resolution read,
“…crypto assets must be subject to fair, transparent and effective taxation. It also invites authorities however to consider a simplified tax treatment for occasional or small traders and small transactions.”
In order to make this happen, the resolution suggested the identification of policies regarding tax evasion in the field of crypto assets along with the development of a clear and broadly accepted definition of crypto assets.
Furthermore, the development of an intelligible definition of a taxable event was also suggested. According to the resolution,
“The conversion of a crypto asset into a fiat currency might be the more appropriate choice and it asks the Commission to specifically assess this option, along with a more general one concerning the identification of possible taxable events.”
In addition to taxing crypto assets, the resolution also identified blockchain as a key and efficient tool. The resolution suggested leveraging its technology in order to automate tax collection and increase transparency by limiting corruption.
The crypto market makes a move
Having barely moved since September 19, the crypto market has noted no major fluctuation until Tuesday. Rising by 5.36%, the total crypto market capitalization recovered by $47.41 billion to reach $928 billion.
Although the market cap is still far away from the $1 trillion mark, the psychological level has consistently proven to be a trend-flipping zone in the past.
Crypto market capitalization
However, the presence of Parabolic SAR’s black dots below the candlesticks does highlight an active uptrend which, if sustained, could push the market cap to $1 trillion.