Regulatory and Tax Challenges to Cryptoasset Market

Authors

Keywords
cryptocurrencies, blockchain, crypto-assets regulation, taxation

Summary
Many potential benefits of crypto assets for the financial sector are widely recognized, including cost savings, improved efficiency and transparency. The proliferation of cryptocurrencies and the remarkable expansion of novel economic practices associated with them pose an unprecedented challenge to established norms of taxation and market regulation. Currently, at the EU-wide level, there is a regulatory gap, which contributes to legal uncertainty and weak investor protection. The European Commission took the first steps to assume its competence over all crypto assets within the EU and, after a comprehensive review of the entire crypto assets ecosystem, issued a proposal for a regulation on markets in crypto assets. The EU legislative initiatives seek to unlock the potential of crypto-assets while mitigating the risks to financial stability, market integrity and consumer protection. This will lead to additional and better financial products for consumers, improving financial inclusion and financing of businesses. This study analyzes the regulatory achievements and challenges to overcome the widespread implementation of blockchain technology and the use of cryptocurrencies. The strengths and weaknesses in the tax practices for taxation of virtual currencies in some countries are discussed, and the emphasis is on the possibilities for overcoming the problem of tax evasion.

JEL: O310, D860, L140
Pages: 27
DOI: 

More titles

  • Possibilities for Determination of the Liquidation Value

    Currently, the global and national economies are experiencing an increase in the level of uncertainty, which is remarkable especially in the markets for the most traded assets. This, in turn, affects the activities of companies in terms of prices, demand and supply of specific resources, which makes it difficult to correctly determine the value of ...

  • Organizational Structures in Management Systems - Science and Practice in Industrial Enterprises

    The article provides a theoretical overview of the nature and role of organizational structures in the enterprise management system. The processes that affect them are considered, as a result of which changes should be made in the organizational structures of enterprises in order to achieve effective management. Management systems are ...

  • Economic Alternatives for the Transport and Energy Sector in the Crisis with Energy Supplies

    Russia is a major energy and commodity producer. The current conflict in Ukraine escalates inflation to extreme levels causes a disruption and provokes high risks to global growth. Brent oil and natural gas prices spiked early in March before falling back, with Brent oil ending the month at $103 per barrel and European gas prices at ˆ121 per ...