The European Union’s Parliament members have recently cast a vote that is to introduce new tax policies surrounding cryptocurrencies.
The members of the European Parliament have cast a vote favoring the non-binding resolution. The particular resolution would enable the usage of blockchain technology.
The tax collection regulatory authorities would be able to use the blockchain in order to keep track of cryptocurrency and blockchain data.
The purpose of putting the tax policies in place would be to fight back tax evasion attempts. The policy would also encourage the regulatory authorities to sit together and work on making necessary amendments to the tax policy governing cryptocurrencies.
Majority Supports the New Policy
The voting at the European Parliament for the new policy was carried out on October 4. Out of the total 705 members of the European Parliament, 566 voted in favor of the new policy.
The policy surrounding the taxation process and actions against the crypto tax evaders was proposed by Lidia Pereira, a member of the European Parliament.
In the draft, it was proposed that all 27 member states in the European Union adopt a cryptocurrency tax treatment that was simplified. The process must be simplified even for cryptocurrency users.
The simplified tax treatment should involve cryptocurrency users who are even involved in small or occasional transactions.
The national tax administrations in the member states would adopt blockchain technology to monitor and track cryptocurrency transactions.
This way, they would be able to collect taxes quite efficiently and take action against those who try to evade cryptocurrency taxes.
Cryptocurrencies are Becoming Regulated
Although it may be something unusual and difficult for cryptocurrency users to adopt this is the right thing in the end.
One way or another, the cryptocurrency industry has earned the recognition and respect it was supposed to get in the first place.
It may have taken time for the cryptocurrency industry to get to this point but finally, governments from all over the world have started to accept their existence.
Among all the regions, the European Union was the most aggressive and resistive towards cryptocurrencies. The region did not even accept cryptocurrencies for a long time.
Finally, with the invocation of the crypto tax policies against cryptocurrencies and taxes, it has become clear that the EU is now open to cryptocurrencies.
The entire European region has finally accepted cryptocurrencies and their existence. The EU implementing tax rules on cryptocurrencies in the region means they are aware of the importance of cryptocurrencies.
They know how much potential the technology offers and how much revenue can be generated from cryptocurrencies.
This is clear proof that cryptocurrencies have now gained worldwide recognition and their adoption would continue growing.