The European Union is considering new taxes on cryptocurrency transactions, online gambling, and large digital companies as part of efforts to fund its next long-term budget, according to an internal European Commission document obtained by Politico.
According to a Politico report citing a document exclusively seen by them, a separate tax on crypto capital gains could raise an additional €1 billion to €2.4 billion annually (around $1.1 billion–$2.7 billion).
The proposals are being examined as EU policymakers seek fresh revenue streams to support the bloc’s nearly €2 trillion (~$2.28 trillion) budget for 2028–2034, which includes repayments related to the EU’s post-pandemic recovery program.
Crypto firms could face new EU-wide levies
According to the Commission’s assessment, the revenue potential from crypto taxation remains difficult to estimate due to limited market data and the rapidly evolving nature of the industry.
The crypto tax proposal forms part of a broader package of potential “own resources” — EU-level revenue sources that help finance the bloc’s budget independently of direct member-state contributions.
Alongside crypto, the Commission estimates that a 3% tax on large digital companies could generate around €5 billion (~$5.7 billion) annually, while a 3% levy on online gambling operators could raise approximately €1.9 billion (~$2.2 billion) per year.
Budget talks face political resistance
The proposals are expected to face significant political hurdles. Any new EU-wide tax requires unanimous approval from all 27 member states.
A digital tax targeting large technology companies could encounter resistance from countries concerned about possible retaliation from the United States, while gambling-related taxes may face opposition from jurisdictions with sizable online betting industries.
The crypto proposal may also spark debate among member states seeking to balance innovation in digital assets with consumer protection and fiscal oversight.
Europe tightens focus on crypto regulation
The tax discussion comes as the EU continues expanding its oversight of the digital asset sector through its Markets in Crypto-Assets (MiCA) framework, which has introduced comprehensive rules for crypto service providers and stablecoin issuers across the bloc.
While MiCA focuses on licensing, consumer protection, and market integrity, the latest proposal signals that policymakers are increasingly examining how the growing crypto industry could contribute directly to public finances.
The tax proposal also follows a series of recent regulatory actions involving crypto-related activities across Europe. Earlier this week, Spain temporarily blocked prediction market platforms Polymarket and Kalshi over allegations that they were operating without the required gambling licenses.
As European authorities continue tightening oversight of digital assets, the latest budget discussions suggest crypto firms could soon face not only stricter compliance obligations but also direct taxation at the EU level.
For now, the proposals remain under review, with negotiations over the EU’s next seven-year budget expected to intensify in the coming months.
Also read: Kenya Moves to Calm Crypto Tax Fears as Finance Bill Debate Grows
