Gernot Blumel, Austria’s finance minister, has urged for tighter regulation of crypto assets in the country. In addition, the minister emphasized his desire is to tax cryptocurrency in the same way that equities are taxed.
While addressing at a German-language ministers meeting in Liechtenstein, Blumel specifically mentioned stricter crypto regulation and taxation.
Cryptocurrencies have already established themselves in the global economy. Despite the fact that crypto-assets have been around for a long time, the use of Bitcoin and other cryptocurrencies skyrocketed during the coronavirus outbreak. Since then, governments have become more concerned about crypto legislation.
The Austrian finance minister stated that he does not support a crypto prohibition. He does, however, want to develop suitable legislation to govern the country’s use of digital assets.
We need measures here that include greater diligence. We do not want a total ban, but cryptocurrencies must not be regulated significantly less than other payment options”
The Austrian finance minister had already discussed the Money Laundering Directive. Last month, the finance minister spoke out against the EU’s idea to impose a 10,000-euro cash limit. Blumel stated at the time that crypto regulation is more important than cash restrictions.
Austria gave no clear yes to the fight against money laundering and the financing of terrorism and an equally clear no to attacks on cash.
Cash gives people a feeling of security, independence and freedom. We want to preserve this freedom for people”
“Issues in the field of money laundering and terrorist funding are fundamentally best tackled on a pan-European basis,” the minister’s spokesperson added.
The spokeswoman, on the other hand, continues that tax issues are primarily the responsibility of the particular member state.
Exchanges of cryptocurrencies to corporations with tax offices
The European Union is now debating a change to the Money Laundering Directive. The commission presented a proposal to address anonymous cryptocurrency wallets.
The European Union has proposed a ban on such crypto wallets. In addition, there are continuing efforts in the EU to integrate crypto exchanges with tax authorities. The joint venture will examine whether cryptocurrency investors have properly taxed their holdings.
Furthermore, there are rumours that the Ministry of Finance is planning to amend the taxation of cryptocurrency price gains.
Crypto assets are now exempt from capital gains tax and are not taxed if held for longer than a year. However, regardless of how long investors retain shares, they must pay a 27.5 percent capital gains tax.
This is currently being negotiated within the coalition; ideally, this regulation also applies to cryptocurrencies. At the moment, there are no explicit legal regulations for the taxation of cryptos in Austria, so tax harmonization is needed here in any case.”
