The European Union will strengthen control and introduce a tax on cryptocurrency

[Perka]

Measures to control the turnover of cryptocurrencies will help in the fight against money laundering, according to the European Parliament, the Parliament approved a package of new measures to combat money laundering in the EU countries, including strengthening control over cryptocurrencies. It is reported by the website of the European Parliament.

The document is the fifth and latest update of the European Union's anti-money laundering Directive, and partly responds to the 2015 and 2016 terrorist attacks in Paris and Brussels, as well as to Panama Papers ' offshore scandal.

The new rules give citizens the right to access information about the beneficial owners of firms operating in the EU and help to avoid the corrupt use of companies established for money laundering, concealment of wealth and tax evasion.

Additional measures will also allow the disclosure of beneficial owners of trusts and similar entities to those with a "legitimate interest", which will allow the provision of information to investigative journalists and non-governmental organizations. EU member States will also retain the right to grant greater access to information in accordance with their national legislation.

The new measures also address the risks associated with subscription cards and virtual currencies. In order to stop the anonymity associated with cryptocurrencies, exchange platforms, cryptocurrency exchanges and virtual wallets, as well as banks, must apply customer control "with due diligence", including customer verification requirements.

Such platforms and providers of cryptocurrency storage services should also be registered, as well as companies providing currency exchange services.

The updated Directive will come into force three days after its publication in the EU official journal. Member States will be given 18 months to implement the new norms into national legislation.

In General, the trend towards regulation of the cryptocurrency market in order to counter illegal financial activities is gaining momentum in the world. So, in the US from January 1 introduced taxes on the exchange of bitcoins, and the European Commission urged the three financial regulators of the EU to urgently update the financial rules to cope with the instability of the most popular cryptocurrency Bitcoin.
Thanks for the + 1 merit

[gehtrs]

Different ways of handling When it comes to tax issues, every region of Europe has a different way of coping, and a cryptographic currency is no exception. The recent G20 summit confirms that there is still no consensus around the world about the status of encrypted currency.

In the short term, every jurisdiction will have its own way of handling it. In the absence of guidelines from EU countries on how to deal with revenues and profits associated with cryptographic currencies, some Member States will follow the European Court's ruling.

In the 2015 decision to apply VAT to the encrypted currency, the European court set a precedent in that it believed that when the digital currency was used to pay, it would essentially equate "virtual currency" with fiat currency.

According to the ruling, the German Federal Ministry of Finance recently announced that VAT applies only to goods and services paid in encrypted currency. According to the German authorities, exchanges can enjoy tax breaks when dealing in encrypted currencies and should not be taxed in the case of encrypted currency mining. However, a standard capital gains tax is payable for the personal transaction of encrypted currency.

Profits below 600 euros and long-term holdings (more than one year) can be exempted. Similar rules have been adopted by Governments in several other countries. Estonia uses the digital currency for capital gains tax and VAT. The Tallinn authorities believe that cryptographic currency is a means of payment and investment.

Slovenia does not believe that the proceeds from the investment of encrypted currency are part of their income. However, the encryption of monetary income for individuals and businesses should be reported and taxed.

The applicable tax rate is based on annual income, and the tax rate of 16% per cent is changed from 8000 euros to a 50% tax rate of more than 70000 euros a year. The Danish tax department announced that the exchange would be taxed as any other business. Individuals who trade in encrypted currency do not have to pay taxes, according to the FSA.

The agency called for legislation to regulate the encryption of currencies and their taxes. Spain is considering tax cuts for companies using block-chain technology and currency encryption.

The exact scope of the exemption has not yet been determined, but the ruling PP has proposed a bill to provide incentives for small companies in the cryptographic currency industry.
Awaiting the decision of Brussels Some EU countries are still waiting for Europe to have a unified tax on encrypted currency. Belgium is the seat of many European Union institutions, but the Belgian government has yet to make an official position on the issue.

However, recent reports indicate that tax authorities are pursuing the sale of encrypted currency by Belgian citizens on foreign exchanges. Although the encrypted currency is unregulated, anyone who deals in encrypted currency will be taxed 33%.

The Special Tax Inspection Bureau said at the end of last year that Belgians should declare in their tax returns that the proceeds from the encrypted currency transaction were "other income". Another member of Bulgaria wants guidance from Brussels. The State administration of taxation has issued a clarification notice that 10% of capital gains tax applies to the profit of buying and selling encrypted currency. However, the Bulgarian Parliament has not yet decided to encrypt the legal status of currency.

It is unclear how the government will tax the revenues of bitcoin and the encrypted currency. According to news. Bitcoin.com reported that the Dutch Treasury Secretary Wopke Hoekstra recently described the current regulatory framework as "inadequate equipment". He spoke of the "intrinsic cross-border" nature of cryptographic currencies and called for a "coordinated international approach".

The Dutch government has insisted on the adoption of new European regulations by the end of next year, including changes to anti-money-laundering regulations, which also cover tax evasion. While EU regulators are trying to understand the currency, other European countries are taking advantage of the non-aligned situation. Belarus, for example, makes political and economic isolation by encrypting money. A decree signed by President Lukashenko introduced tax breaks and other incentives for cryptographic currency-related activities by 2023. It will take effect from March 28. Whether such a cryptographic monetary-friendly policy will fill the coffers at the end of government funding remains to be seen.

[Crypto-capitalist]

Maybe this is good news. Will see

[Yaunfitda]

If its good for the crypto market as a whole then why not? EU has always been against crypto in my opinion, but if they wanted to adopt bitcoin and crypto and impose taxes then I guess I'm OK with it. We need to draw the line and regulation will add some form of legitimacy on the ecosystem. Regulations like KYC/AML for exchanges and putting a tax, will somewhat attract more investors in rich laden Europe to pour their cash on crypto, in my opinion. But I'm against a single regulatory body to overlook everything. Crypto is decentralizes, and that said, no one should be on top of it.

[alroys]

If the use of Cryptocurrency has received good supervision and control, And in taxes by it. that means Bitcoin and Cryptocurrency will be Legalized. I hope this is good news, and what I say is true.

[KingScorpio]

Measures to control the turnover of cryptocurrencies will help in the fight against money laundering, according to the European Parliament, the Parliament approved a package of new measures to combat money laundering in the EU countries, including strengthening control over cryptocurrencies. It is reported by the website of the European Parliament.

The document is the fifth and latest update of the European Union's anti-money laundering Directive, and partly responds to the 2015 and 2016 terrorist attacks in Paris and Brussels, as well as to Panama Papers ' offshore scandal.

The new rules give citizens the right to access information about the beneficial owners of firms operating in the EU and help to avoid the corrupt use of companies established for money laundering, concealment of wealth and tax evasion.

Additional measures will also allow the disclosure of beneficial owners of trusts and similar entities to those with a "legitimate interest", which will allow the provision of information to investigative journalists and non-governmental organizations. EU member States will also retain the right to grant greater access to information in accordance with their national legislation.

The new measures also address the risks associated with subscription cards and virtual currencies. In order to stop the anonymity associated with cryptocurrencies, exchange platforms, cryptocurrency exchanges and virtual wallets, as well as banks, must apply customer control "with due diligence", including customer verification requirements.

Such platforms and providers of cryptocurrency storage services should also be registered, as well as companies providing currency exchange services.

The updated Directive will come into force three days after its publication in the EU official journal. Member States will be given 18 months to implement the new norms into national legislation.

In General, the trend towards regulation of the cryptocurrency market in order to counter illegal financial activities is gaining momentum in the world. So, in the US from January 1 introduced taxes on the exchange of bitcoins, and the European Commission urged the three financial regulators of the EU to urgently update the financial rules to cope with the instability of the most popular cryptocurrency Bitcoin.
Thanks for the + 1 merit

and how do you tax cryptocapitalists? they have a lot of cryptocurrencies and they can create more whenever they want, if the eu gets communist on that, this would mean switzerland, luxemburg etc will get all the capitalists of tomorrow

[jouns]

In another form, the government will not allow the existence of a crypto currency, only through tight control over your savings and payment of taxes.

[Perka]

Maybe this is good news. Will see

As shows the present day.This news is great

[Perka]

If its good for the crypto market as a whole then why not? EU has always been against crypto in my opinion, but if they wanted to adopt bitcoin and crypto and impose taxes then I guess I'm OK with it. We need to draw the line and regulation will add some form of legitimacy on the ecosystem. Regulations like KYC/AML for exchanges and putting a tax, will somewhat attract more investors in rich laden Europe to pour their cash on crypto, in my opinion. But I'm against a single regulatory body to overlook everything. Crypto is decentralizes, and that said, no one should be on top of it.

Thank you for interest to my office.All right

[qiwoman2]

Here in CYPRUS the rules are slightly more relaxed because we also have a ton of Forex exchanges parked here and I think a crypto exchange is also opening soon. Here if you earn money and profits from shares and securities you don't get taxed and as many ICOS and stuff are classed as securities, if you profit from them you are o.k to bring the money in. I am not sure on other Bitcoin related matters though as Bitcoin is NOT yet classed as a currency here. It's still very much a grey area that hasn't yet been fully discussed by the Authorities. I am wondering though once the EU gets tighter and tighter, if this will impact CYPRUS as well.

[traderethereum]

this will bring a new hope for cryptocurrency user because they are protected by the government although they need to pay tax for getting involved in the cryptocurrency. and I am sure that the cryptocurrency will grow more if the tax is to prevent money laundering that might be happening in every country and I think every country should do this too. I think they want to protect their people from being a scam by any of websites related with cryptocurrency and they want to know how this will be a win-win solution for the government and the cryptocurrency user.

[WolfFox]

I don't think that pressure of goverments on cryptocurrency could be the good news. All this attempts of goverments to control crypto will be failed. It is the main idea of cryptocurrency!

[Newboybb]

That is good news.
Because taxation means acknowledging that markets are legal, people are free to trade.

[omonuyak]

I am not against taxation and governments putting control over cryptocurrencies is what I dislike because they were against it from beginning. I think we should not have any limits to how people that believe in cryptocurrency from beginning to used they earning because that is what governments European Union is trying to do.

[chanc3r]

That is good news.
Because taxation means acknowledging that markets are legal, people are free to trade.

But that article is mainly telling us about the more restriction to the cryptocurrency to avoid money laundering.

We will be focussing on the AML and KYC verification, and that's it.

Said every part of the financial, economic system must have registered. Every related financial service must register the members.

KYC and AML, and all of that.

[Bttzed03]

This is a good move and will have a positive effect on crypto as a whole in my opinion. This is way better than banning cryptocurrencies. Let's wait and see how it's going to be implemented.

[kryptqnick]

I think it is fair to control money laundering officially. Taxes will make cryptocurrencies legal are it is thus beneficial both for the government and for users.
If they set some reasonable sum which should be declared and explained, that wouldn't cause inconvenience to most of people while it would help strengthen the economy of the EU and catch those who are operating some illegal money. I suppose a reasonable sum would be about $50k worth of cryptocurrencies.
It's still problematic to approach control this way, since one can diversify a very big amount of money into various coins and thus it won't be noticed.

[Gelesko]

Thanks for the + 1 merit

LOL, copying an article and pasting it in, it's not a merit! Anyway about the article, I think that's a good news. I am positive about bringing cryptocurrency more legal fold, that means less scams project, that I waste my time on and save myself money. I am not against additional tax, as long as politicians don't corrupt, as it can be for them a new way to corrupt schemes. 

[eternalgloom]

If its good for the crypto market as a whole then why not? EU has always been against crypto in my opinion, but if they wanted to adopt bitcoin and crypto and impose taxes then I guess I'm OK with it. We need to draw the line and regulation will add some form of legitimacy on the ecosystem. Regulations like KYC/AML for exchanges and putting a tax, will somewhat attract more investors in rich laden Europe to pour their cash on crypto, in my opinion. But I'm against a single regulatory body to overlook everything. Crypto is decentralizes, and that said, no one should be on top of it.

How has the EU always been against crypto? I've always had the idea that the EU itself isn't for or against crypto, since they're still working on legislation.
Also rules are widly different when you look at individual member states. In most cases, I'd say it's far better to live in most EU countries than in the US, as a crypto trader.

Here you pay a tax only when you exchange crypto to fiat, while in the US you pay taxes on every trade, even those between crypto.

[yugyug]

In my own point the decentralisation concept of cryptocurrency must not involve to end users or to consumer level, anonymity and decentralisation would take place only on the blockchain and its network but when the cryptocurrencies are handd down to the en user, then regulation must be implemented to prevent money laundering and it could also protect the end users from other fraud from crypto-related activities. To sustain the cryptocurrency governing body must involve to protect their citizens.