European Commission Says EU-Wide Crypto Taxes Could Raise €20 Billion
The European Commission estimates a 0.1% crypto transaction tax and capital gains tax could raise about €20 billion in 2028-2034, though member states are still negotiating the proposals and market structure concerns remain.
The European Commission said potential new EU-wide crypto taxes could raise about €20 billion over the 2028-2034 budget cycle. Its estimates indicate that a 0.1% tax on crypto transaction value could generate roughly €3 billion to €4 billion a year, while a crypto capital gains tax could add about €1 billion to €2.4 billion annually. The proposals are still under negotiation among European Union member states, so the figures reflect projected rather than finalized revenue. The proposal has also raised concerns that some activity could shift toward decentralized platforms, potentially complicating enforcement and affecting liquidity in the European Union crypto market.
- Capital gains tax: A tax on profits from selling an asset for more than its purchase price, commonly applied when investors realize gains.
- Crypto transaction tax: A levy based on the value of cryptocurrency trades or transfers, calculated as a percentage of each transaction.
- Market liquidity: The ease with which an asset can be traded without causing a large change in its price.