EU Mulls Crypto Transaction Tax as Part of Wider Budget Package

The European Union is exploring new revenue streams to fund its next long-term budget cycle, which includes a potential 0.1% tax on cryptocurrency transactions.

This proposal is part of a broader package targeting digital services and online gambling, aiming to raise around €20 billion over the seven-year period. The tax would apply to the value of crypto transactions, with estimates suggesting it could bring in between €3 billion and €4 billion per year.

Other sources of revenue under consideration include a 3% levy on online gambling net turnover and a digital services tax, which could add around €5 billion annually. However, implementing these taxes will require unanimous approval from all 27 member states, which may prove challenging due to differing national interests and concerns about data quality.

While the proposal has been met with resistance, it marks a significant shift in the EU's approach to regulating cryptocurrencies, moving beyond traditional compliance policies and into more direct revenue streams. The impact of such a tax on the crypto industry remains uncertain, but it could influence market dynamics and user behavior.