- Besides NFTs could tax foreign companies
- Law to be agreed in a week
The European Union may introduce a law that would force cryptocurrency companies to provide detailed information about their customers’ assets.
Also, cryptocurrencies will be required to register with the tax authorities, even if they are based outside the block or offer NFTs. The legislation will reportedly be released next week.
According to the statement, the data-sharing law is expected to be agreed upon by finance ministers next week.
After its implementation, all 27 EU member states will be able to exchange data. Commission officials said the bill received unanimous approval at Wednesday’s meeting.
Although some people, who asked not to be named, said that some finance ministers have not yet received formal approval from parliaments.
The EU regulation says:
“The crypto-asset market has gained in importance and increased its capitalization significantly and rapidly in the last 10 years.
Cryptocurrencies are a digital representation of value or a right that can be transferred and stored electronically, using distributed ledger technology or similar technology.
Member states have rules and guidelines for the taxation of income derived from transactions with cryptoassets.
However, the decentralized nature of crypto-assets makes it difficult for member states’ tax administrations to enforce tax compliance.
The European Union said yesterday, May 11, that it could impose a ban on large staplecoins if they feared they might violate monetary policy.
The statement says that the use of blockchain without authorization could be financially insolvent.