EU policymakers vote to modernize tax with blockchain technology

The European Parliament voted in favor of a resolution that acts as a crypto-focused double whammy — tackling both tax evasion through crypto-assets and streamlining rules for their taxation.The resolution tries to identify what makes a taxable event, and suggests that the conversion from crypto to fiat currency is the most viable option.

Additionally, the exchange of taxpayer information by cross-national tax administration will need to include information on crypto-assets. However, the policy also calls for a “simplified tax treatment” for smaller transactions. Blockchain technology is also pushed forward as an instrument for tax collection, identifying the technology’s potential to “automate tax collection, limit corruption and better identify ownership of tangible and intangible assets allowing for better taxing mobile taxpayers,” according to the European Parliament’s release.