The European Union is weighing a new taxation plan that would see a 0.1% levy on cryptocurrency transactions as part of its next budget cycle. This move aims to raise additional revenue from the growing crypto market, which has seen significant activity in recent years.
The proposal is part of a wider package targeting crypto assets, digital services, and online gambling for the 2028-2034 EU budget cycle. According to estimates, a 0.1% levy on crypto transaction value could raise around €3 billion to €4 billion per year, while a separate crypto capital-gains model could add another €1 billion to €2.4 billion annually.
The European Union's own challenge in implementing this tax is data quality. Reliable DAC8 reporting data will only start arriving from 2027, and crypto volumes can swing sharply with market cycles. A tax forecast based on strong trading activity can look very different if volumes fall, users move off regulated platforms or liquidity shifts outside the bloc.