TechFlow news, December 24 — According to The Block, major global markets are intensifying tax regulation on cryptocurrencies. Under recent policies, the U.S. IRS classifies crypto assets as digital assets and applies a taxation approach similar to stocks and bonds. Specifically, merely buying and holding crypto is not taxed, but capital gains tax applies to actions that "realize gains," such as selling, exchanging between cryptocurrencies, or using crypto for purchases. Income from mining, staking rewards, and wages received in cryptocurrency form are subject to income tax.
The UK’s Her Majesty's Revenue and Customs (HMRC) levies a capital gains tax on cryptocurrency transactions at a maximum rate of 24%, with a 10% rate for basic-rate taxpayers, along with an initial tax-free allowance of £3,000. Additionally, income from mining and salaries paid in cryptocurrency are subject to income tax, and employers must pay National Insurance contributions on compensation disbursed in crypto.
The European Union currently lacks a unified tax standard, resulting in significant policy variations among member states. Germany exempts cryptocurrency assets held for over one year from taxation; assets sold within one year are subject to income tax of up to 45%, plus a 5.5% solidarity surcharge. Spain imposes a flat tax rate of 19%–28% on crypto gains. Portugal, once considered a tax haven, has tightened its policies, expanding its tax rates to a range of 14.5%–53%, with a standard capital gains tax rate of 28%.
Konstantin Vasilenko, CEO of Paybis, noted that with the EU's MiCA regulations and Travel Rule set to take effect in 2025, regulators will further strengthen oversight of crypto asset taxation. Elisenda Fabrega, Legal Director at Brickken, added that while the EU is striving to advance regulatory harmonization, key tax policies—including tax rates, thresholds, and exemptions—remain determined independently by each member state.
