The European Commission has proposed a 0.1% transaction tax on crypto assets, a levy it estimates could generate between €3 billion and €4 billion per year based on 2025 market projections. The May 29 document also floated a capital gains tax alternative, projected to bring in between €1 billion and €2.4 billion annually.
Patrick Hansen, Circle’s EU policy lead, warned that a transaction levy on centralized platforms could push traders toward decentralized alternatives, where enforcement remains a work in progress. The DAC8 reporting rules, effective January 1, 2026, require crypto-asset service providers to report transaction data for EU residents to tax authorities, creating a foundation for enforcement that currently only covers regulated platforms.
For market makers and algorithmic traders, even a fraction of a percent compounds rapidly. These participants provide the liquidity that keeps markets efficient. Any new EU-wide tax requires unanimous consent from all 27 member states, a significant political hurdle given varying national crypto policies.
The proposals remain in an evaluative phase with no formal legislative timeline.