How Do Different Tax Laws in the US and EU Affect Cryptocurrency Investments?

In the US, cryptocurrency is generally treated as property for tax purposes, meaning capital gains tax is owed when it is sold, traded, or used to purchase goods or services. The EU's approach is more varied across member states, with some treating crypto as currency, property, or a financial asset.

This lack of harmonization creates complexity for investors. Taxable events, such as staking rewards or airdrops, also vary significantly, requiring careful tracking and compliance in each region.