European Union
Region: europeLegal
Cryptocurrency is legal in European Union, regulated primarily by ESMA. Legal. Taxed according to individual member state tax rates (ranges from 0% to 30%+).
Regulatory Framework
Trading & ownership
Legal. Fully regulated across EU member states under MiCA (Markets in Crypto-Assets).
Payments & Commerce
Permitted. Regulated under updated transfer of funds rules.
Mining Operations
Legal, subject to standard environmental and corporate declarations.
Exchange Licensing & AML/KYC
Strictly required. Providers must be licensed as CASPs (Crypto-Asset Service Providers) under MiCA. KYC: Mandatory KYC applies to all transactions with no minimum threshold under new regulations.. AML: Governed by the EU Transfer of Funds Regulation (TFR) and anti-money laundering rules.
Taxation
Capital Gains Tax
Taxed according to individual member state tax rates (ranges from 0% to 30%+).
Income Tax (Staking/Mining)
Staking and mining are taxed as income in most EU jurisdictions.
VAT & Sales Tax
Exempt from VAT across the EU since the Hedqvist European Court ruling.