Cryptocurrency Taxation Across Jurisdictions: Challenges, Comparative Analysis, And The Case For Global Harmonization
- IJLLR Journal
- Dec 31, 2025
- 1 min read
Devananda M N, BBA LLB, Symbiosis Law School Hyderabad
ABSTRACT
The taxation of cryptocurrency has turned out to be one of the most pressing challenges of modern financial regulation. Governments are under increasing pressure to integrate the decentralized digital assets in the current tax systems as the concept is gaining global acceptance. The paper will examine cryptocurrency taxation issues in different jurisdictions, namely India, Spain, Netherlands, Denmark, and Portugal. It highlights how the conflicting legal treatment of cryptocurrencies i.e., as property, currency, commodities or securities impacts taxation.
The study also looks into other issues such as double taxation, compliance burden, non-harmonization, and the risk of evading taxes. The paper argues that the existing frameworks of taxation that have largely been adjusted to suit the traditional financial system are not in a position to adequately adapt to the features of the cryptocurrencies that are decentralized and produced across geographical boundaries. The conclusion comes in presenting a case to have an internationally integrated system of taxation, consistent with technological aids such as blockchain-based reporting, to have a fair, compliant and sustainable growing digital economy.
