Crypto Tax Proposed by Lawmakers to Fund EU Budget

Taxing capital gains, mining or crypto transactions are all being examined to fund the European Union’s $185 billion annual spending.

AccessTimeIconJan 24, 2023 at 11:17 a.m. UTC
Updated Jan 24, 2023 at 4:12 p.m. UTC

Lawmakers in the European Parliament have proposed taxes on crypto assets to fund the European Union's annual budget of 170 billion euros ($185 billion).

Options included in a draft report for the Parliament’s budget committee, published on Jan. 16, include taxes on investors’ capital gains, transactions or mining.

The report “suggests the introduction of a European tax on crypto assets, whose revenues would flow into the European budget,” the report by French lawmaker Valérie Hayer and Portuguese Social Democrat José Manuel Fernandes stated. “Regulating and taxing crypto assets at the EU level is more efficient than at national level given their high mobility and cross-border dimension.”

In December, the European Commission, the EU's executive body, proposed new rules to exchange details of a crypto investor’s holdings between tax authorities – but decisions on what and how much to tax remain a matter for national governments.

Other lawmakers on the committee have until Feb. 2 to propose changes to the report. In reality, the Parliament’s 705 lawmakers have limited control over tax laws, which are usually agreed by the bloc’s 27 national finance ministers acting unanimously.

European Central Bank’ board member Fabio Panetta has previously said taxation could be used to address crypto's environmental costs, especially arising from the proof-of-work technology used in the mining of bitcoin (BTC).

The lawmakers are also looking at taxes on corporate profits, carbon-intensive imports and financial transactions as they seek to fund the bloc’s budget, which is now largely financed by national contributions and spent on farm subsidies and regional investments.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.