Crypto-Asset Capital Gains Taxation in the European Union: Navigating Tax Policy Challenges

In this article, the author examines the principal tax policy challenges surrounding the taxation of capital gains derived from crypto assets by individuals within the European Union. The article analyses the definition and legal characterization of crypto assets, the identification of taxable events, valuation methodologies and the role of exit taxation through a comparative assessment of Member States’ approaches. It further explores the policy rationales underlying divergent national regimes, with particular emphasis on the taxation of crypto-to-crypto exchanges. Finally, the article evaluates the European Commission’s recent exploration of a harmonized crypto-asset-based own resource and argues that a thorough understanding of existing policy choices is an essential prerequisite for any meaningful future harmonization of crypto asset taxation.