- In addition to NFTs, foreign companies can be taxed
- The law will be approved in a week
The European Union may implement a law that will force cryptocurrency companies to provide detailed information about their clients’ assets. Also, crypto firms will be required to register with the tax authorities, even if they are based outside the block or offer NFTs. The legislation is expected to be released next week.
The data-sharing law is due to be agreed by finance ministers next week, according to the statement. 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 some finance ministers have yet to receive formal approval from parliaments.
The EU regulation says:
“The crypto asset market has gained a lot of importance and increased its capitalization significantly and rapidly over the past 10 years. Cryptocurrencies are a digital representation of a value or right that can be transferred and stored electronically, using distributed ledger technology or similar technology. Member States have rules and guidelines in place to tax income derived from operations with crypto assets. However, the decentralized nature of crypto assets makes it difficult for the tax administrations of member states to ensure tax compliance.”
Yesterday, May 11, the European Union announced that it could impose a ban on large stablecoins if they fear that they may violate monetary policy. The statement says that the use of the blockchain without permission may be financially untenable.
