Key facts
- The European Commission proposed a 0.1% tax on crypto transactions across the EU.
- The EU crypto transaction tax is estimated to generate €3 billion to €4 billion annually.
- New EU reporting rules under DAC8 take effect January 1, 2026.
- Israel's voluntary crypto disclosure program had 58 participants.
- Israel's program offered criminal immunity for investments under $522,000.
- Approximately $50 million in crypto capital was reported in Israel's program.
- An estimated $1 billion in crypto is held by Israeli citizens.
- The US House Ways and Means Committee circulated seven draft bills on digital asset taxation.
- Illinois passed a budget bill including a 0.2% tax on cryptocurrency transactions.
- The Illinois crypto tax is set to take effect in fiscal year 2027.
- The Markets in Crypto-Assets (MiCA) regulation takes effect July 1.
Global efforts to regulate and tax cryptocurrency are intensifying, with different jurisdictions adopting distinct strategies. The European Commission has put forth a proposal for a 0.1% tax on all crypto transactions within the European Union. This measure is projected to generate between €3 billion and €4 billion annually. However, concerns exist that such a tax could push cryptocurrency activities towards decentralized platforms, circumventing traditional reporting mechanisms. New reporting requirements under DAC8 are scheduled to commence on January 1, 2026, impacting how crypto transactions are documented across the EU.
In Israel, a voluntary crypto disclosure program aimed at recovering unpaid taxes has fallen short of expectations. Only 58 participants enrolled, and the reported crypto capital amounts to approximately $50 million, a small fraction of the estimated $1 billion held by Israeli citizens. The program offered criminal immunity for undisclosed investments below $522,000, but a lack of anonymous filing options appears to have deterred many potential participants. The Israeli Tax Authority expressed disappointment with the low turnout.
In the United States, the House Ways and Means Committee is exploring ways to clarify digital asset taxation. Seven draft bills have been circulated, addressing issues related to mining, staking, and stablecoins. A key consideration is a de minimis reporting exception for small cryptocurrency transactions, intended to alleviate the compliance burden on individual crypto holders. Separately, Illinois lawmakers have passed a budget bill that includes a 0.2% tax on cryptocurrency transactions. This tax is slated to take effect in fiscal year 2027 and will be collected by registered digital asset brokers. This provision is part of a larger $56 billion state budget.
Meanwhile, Bybit EU is proactively strengthening its operational presence in Europe. This move comes in anticipation of the Markets in Crypto-Assets (MiCA) regulation, which is set to be implemented on July 1. The exchange is enhancing its infrastructure and operations to align with the forthcoming regulatory framework governing crypto-assets in the EU.