April 18, 2021

The ECB proposed taxing cryptocurrency transactionsBitcoin …

ECB proposes taxing cryptocurrency transactions

Bitcoin needs to be regulated and even taxed. This opinion is shared by a member of the Board of the European Central Bank and the head of the Central Bank of Austria Ewald Novotny.

The ECB has proposed taxing cryptocurrency transactionsBitcoin needs to be regulated and even taxed ...

In a conversation with the German edition of the Sueddeutsche Zeitung, Novotny noted that any person carrying out financial transactions must be fully identified, as well as pay value added tax.

According to the Daily Mail, the banker also expressed concerns about the use of cryptocurrencies for money laundering..

“After we decided to stop printing 500 euro banknotes in order to combat money laundering, we introduced strict rules for any, even the smallest savings society, we cannot just sit and watch as people around the world carelessly launder money with bitcoin, ”he said.

The ECB has proposed taxing cryptocurrency transactionsBitcoin needs to be regulated and even taxed ...

Novotny made this comment just days after another ECB board member, Benoit Kere, called bitcoin a bubble. Like his Austrian counterpart, Kere believes that the main risks of bitcoin are associated with the possibility of money laundering and tax evasion..

The ECB has proposed taxing cryptocurrency transactionsBitcoin needs to be regulated and even taxed ...

Both bankers do not see bitcoin as a currency, and Kere notes that investors will not be able to use it in their calculations. In doing so, he recognizes that distributed ledger technology has significant potential. However, according to Kere, this technology is too young, which does not allow considering the possibility of its implementation at the level of central banks..

The ECB has proposed taxing cryptocurrency transactionsBitcoin needs to be regulated and even taxed ...

In mid-November, Novotny proposed limiting bitcoin trading in Europe following the example of China, later adding that the ECB would be accused of inaction when the cryptocurrency market crashed..

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