European Commission's New Draft Tax Directive: Taxing Cryptocurrencies Could Bring in $2.5 Billion for the EU

The European Commission’s proposal to tax cryptocurrencies estimates that taxing crypto assets could generate $2.5 billion in revenue for the EU, according to a draft obtained by The Block. The proposal, which is expected to pass in committee this week, aims to close regulatory gaps and ensure member states avoid tax shortfalls. Cryptographic service providers in the EU will need to report to national tax authorities, according to the draft, which defines cryptoassets as assets issued in a decentralized manner, as well as stablecoins and certain non-fungible tokens.