According to a report by The Block, major markets around the world are strengthening regulations on cryptocurrency taxation. Under the latest policy, the US IRS classifies crypto assets as digital assets, adopting a taxation method similar to that for stocks and bonds. Specifically, simply buying and holding is not taxed, but actions that 'realize gains' such as selling, exchanging between cryptocurrencies, and using cryptocurrencies for purchases are subject to capital gains tax; mining income, staking rewards, and wages received in cryptocurrency are taxed as income.
The UK HMRC imposes a maximum capital gains tax of 24% on cryptocurrency transactions, with a basic rate taxpayer applicable to a 10% rate and a tax-free allowance of the first £3,000. Additionally, mining income and wages paid in cryptocurrency are subject to personal income tax, and employers must pay national insurance on wages paid in cryptocurrency.
The EU has not yet unified its taxation standards, and there are significant policy differences among member states. Germany exempts crypto assets held for more than a year from taxation, while selling within a year incurs a maximum income tax of 45%, plus an additional 5.5% solidarity surcharge. Spain levies a unified tax rate of 19%-28% on crypto gains. Portugal's tax rate ranges from 14.5%-53%, with a standard capital gains tax rate of 28%.
