EU Crypto Framework Passage Provides Basis for Tax Reporting

The backing of European Parliament lawmakers for comprehensive EU cryptocurrency regulation marks an important step toward implementation of the bloc’s plans for taxing digital assets.

Although not a tax law, the Markets in Crypto Assets Regulation approved Thursday by members of the European Parliament sitting in Strasbourg, France, will make the parties in crypto transactions more identifiable and will form the basis of separate rules on tax reporting related to crypto.

Under MiCA, crypto-asset service providers will only be able to offer services in the EU if they have a legal presence in the bloc and are authorized by an ...