Tuesday, 30 May, 2023

EU backs tougher tax rules on crypto transactions

EU backs tougher tax rules on crypto transactions

BRUSSELS: EU ministers agreed stronger rules Tuesday to crack down on the use of cryptocurrencies in tax fraud, as Brussels bolsters its efforts to regulate the volatile sector.

Regulators worldwide are increasingly worried about the lack of oversight of the digital currency sector but the European Union has already taken steps to protect investors, reports AFP.

The 27-member bloc's parliament last month approved the world's first comprehensive rules covering crypto assets, which include cryptocurrencies such as bitcoin and ethereum and tradable tokens whose value is secured using blockchain technology, such as NFTs.

During a meeting of EU economy and finance ministers on Tuesday, they agreed on rules to go after individuals who stash their cash where tax authorities have no oversight.

The rules will close loopholes that allow people to avoid taxation on their income using crypto assets, Swedish Finance Minister Elisabeth Svantesson said.

"This reduces the risk of crypto assets being used as a safe haven for tax avoidance and tax fraud," she added in a statement. The European Commission, the EU's executive arm charged with implementing EU laws and regulations, welcomed the ministers' approval, adding that it would also help curb tax evasion.