Crypto Taxation:"Defining and Regulating Digital Assets in the EU and Beyond"

Abstract

This thesis examines the fundamental conflict between borderless digital assets and territorially anchored tax systems within the European Union and international jurisdictions. It identifies a "Definitional Quagmire" where the EU’s harmonised financial regulation (MiCA) contrasts sharply with the fragmented direct tax classifications applied by individual Member States. This legal incoherence acts as a non-tariff barrier, creating significant compliance costs for cross-border businesses and distorting the Internal Market. The research further analyses the "Enforcement Gap," arguing that the EU’s reliance on intermediary reporting through DAC8 is structurally insufficient to capture the opaque decentralised finance (DeFi) economy. By comparing the EU approach with the United Kingdom’s new property laws and the United States’ enforcement-led model, the study highlights how legal certainty has become a key driver of global competitiveness. A critical finding is that while the EU has established a robust surveillance architecture, it lacks a unified tax base to effectively utilise the collected data. Ultimately, the thesis recommends a "Fiscal-Regulatory Alignment" where MiCA’s definitions serve as the binding classification for tax purposes to ensure a coherent Digital Single Market.