TL;DR: EU lawmakers want crypto-asset risks addressed in the Commission’s anti-corruption strategy, due Q4 2026. Greece drafted a 10% crypto capital gains tax with a €500 ($561) annual exemption. Israel is weighing broader passive-income taxes, not AI-specific ones, to protect revenue as AI threatens jobs.
Key Takeaways:
Anti-corruption and taxation were on the global regulatory agenda last week, as a hectic few days of announcements saw lawmakers across the globe eyeing new rules to address the impact of innovative technologies such as crypto-assets and artificial intelligence.
In Europe, European Union lawmakers are aiming to target the “opaque” crypto industry in a bid to tighten anti-corruption rules, while, at the national level, Greece plans to update its digital asset taxation regulation, introducing a 10% tax on crypto capital gains. At the same time, in the Middle East, Israel is also reconsidering its tax rules to counter the negative effects of artificial intelligence (AI) on its workforce.
EU lawmakers set out anti-corruption wish list
European lawmakers have published a new anti-corruption strategy that calls for stricter rules on conflicts of interest and political financing, including a new focus on risks related to digital assets.
On October 8, members of the European Parliament (MEPs) adopted their priorities for the anti-corruption strategy currently being prepared by the European Commission—the executive arm of the EU—and due to be finalized in the Q4 of 2026; the strategy aims to strengthen prevention, enforcement, and integrity across the EU.
In a resolution adopted by a show of hands, lawmakers agreed that the anti-corruption strategy must address evolving corruption risks linked to organized crime and “new technologies,” following the entry into force of the anti-corruption directive in May 2026.
In particular, the Parliamentarians highlighted risks linked to “crypto-assets, opaque ownership structures, and digital tools.”
Based on EU estimates, the bloc stands to gain up to €58.5 billion ($65.5 billion) per year from its increased focus on tackling corruption. Meanwhile, a 2025 Special Eurobarometer found that 69% of Europeans believed corruption was widespread in their country, while, according to Europol, almost 60% of criminal networks engage in corruption in one way or another.
The exponential growth of the digital asset space over the past decade or more has seen a parallel growth in concerns around its ability to facilitate and increase corruption. A 2025 report by the Basel Institute on Governance, an international non-profit organization focused on preventing and combating corruption, warned that “without a clear understanding of crypto-related risks and proper safeguards, the industry could create more opportunities for corruption and related financial crimes such as money laundering, terrorist financing and sanctions evasion.”
Evidence for this already exist around the globe: in 2024, a Ukrainian Member of Parliament was sentenced to eight years in prison for offering a bribe of €46,000 ($51,533) in BTC to secure funding for reconstruction projects; the same year, digital currency payments were allegedly made to a former senior official at the China Securities Regulatory Commission in return for abuses of power in making appointments and securing loans—alongside expensive liquor and invitations to banquets; and in June 2025, two employees of the state-owned China Construction Bank were charged in Hong Kong with bribery and other offenses, having allegedly accepted around $470,000 in digital assets in exchange for authenticating false documents for the now-bankrupt Israeli firm Vesttoo.
In the October 8 press release announcing its new position on corruption, the EU parliament said: “Corruption erodes citizens’ trust, undermines democracy and the rule of law, distorts economic activity, and creates openings for organised crime and hostile actors.”
They went on to warn that “perceived impunity can be as damaging to democratic legitimacy as corruption itself.”
In terms of how best to combat this perceived threat, MEPs also called for stronger action to trace, freeze, confiscate, and recover criminal proceeds.
While EU politicians focus on crypto’s corruption risks, at the local level, Greek lawmakers currently appear more concerned with appropriately taxing the sector.
Greece plans 10% cryptocurrency capital gains tax
The same day the EU announced its new corruption priorities, Reuters reported that Greece was preparing legislation to impose a 10% capital gains tax on digital assets, with an annual exemption of €500 ($561).
According to a draft bill published for public consultation on October 8, Greece’s Ministry of National Economy and Finance is looking to tighten regulations on the taxation of digital currencies, alongside new measures for capital markets and banking, agricultural oil, electronic payments, and the fuel market.
The bill, whose main focus is strengthening debtor protection and stricter supervision of servicers, would introduce a new tax framework for cryptocurrencies that “closes the legislative gap regarding their tax treatment and enhances tax certainty.”
Greece has historically lacked a comprehensive, digital currency-specific tax framework, while across the EU, digital currency taxation remains largely a matter of national law, with rates and exemptions varying by country and the nature of the transaction; a Reuters report published June 5 of this year cited rates ranging from 8% in Cyprus to 30% in France.
Based on the draft bill published last Thursday, Greece plans to tax the capital gain of individuals from the transfer of cryptocurrencies at a rate of 10%, with capital gain up to €500 ($561) per tax year exempt, while the exchange of one cryptocurrency for another would also not create taxable gain.
In addition, returns from activities such as lending, liquidity provision and staking of digital currencies will be taxed as interest, also at a rate of 10%, while for the purpose of inheritance, gift and parental benefit tax, digital currencies will be classified as “intangible movable property located abroad” and their value will be determined based on their value in euros on the day preceding the date of the tax liability.
According to the bill, digital asset holders and investors will be able to voluntarily report capital gains from prior transfers within 12 months of the law’s publication, without penalties or interest.
Greek officials have reportedly claimed that the size of the country’s digital asset market is difficult to estimate, so it’s uncertain what impact the proposed measures would have on citizens and the national coffers. According to a 2025 report by blockchain analytics firm TRM Labs, Greece had the 75th highest levels of digital asset adoption in the first half of last year, ahead of notable crypto-hubs Switzerland and El Salvador.
It was also ten places ahead of Israel, which is likewise exploring new tech-related taxes, but rather than digital currency, it is focused on combating the negative effects of the AI boom.
Israel considers new taxes as AI threatens jobs and state revenues
Israel’s Finance Ministry is considering a series of tax measures to protect government revenues as AI adoption raises concerns about job losses, weaker wage growth, and a potential decline in income-tax receipts, according to an October 8 report from local outlet The Times of Israel.
The proposals follow a wave of layoffs across Israel’s technology sector, fueling concerns that companies are increasingly using AI to automate roles or shifting work to software and services supplied from abroad – principally the United States.
An interim report led by the Finance Ministry’s chief economist, Dr. Shmuel Abramzon, identified the potential fiscal consequences of this shift, with taxes on employment income and social security contributions accounting for a substantial share of state revenue, leaving public finances exposed if AI reduces the number of workers or the proportion of national income paid as wages.
According to Central Bureau of Statistics (CBS) data cited by Abramzon et al, in Israel, technology employees contribute more than a third of all tax income collected, highlighting the sector’s importance to the government’s tax base.
“In Israel, as in many countries around the world, the effective taxation on labor is higher than on capital, so erosion of labor’s share of output could reduce the state’s total revenues from labor taxes,” read the report. “In addition, there is concern that payment to workers in Israel will be replaced by payment for services provided from outside Israel, which would further increase the erosion of Israel’s tax base.”
The report added that, “without adjustments to the tax system, and absent other revenues, this trend could lead to high deficits.”
The Finance Ministry is also concerned that AI could weaken the link between economic activity in Israel and the profits taxed there. Multinational technology companies may increasingly rely on AI infrastructure and intellectual property located overseas, potentially shifting income towards parent companies and jurisdictions such as the United States.
This presents a challenge for Israel’s corporate tax framework, particularly where services previously delivered by local employees are replaced by AI-powered systems operated abroad, and the stakes are significant; Nvidia (NASDAQ: NVDA), Intel (NASDAQ: INTC), and Microsoft (NASDAQ: MSFT) are among the major international technology companies with research and development centers in Israel, where multinational investment and highly paid technical jobs support both economic activity and tax receipts.
Despite the revenue risks, Abramzon and the other experts consulted for the report advised against introducing taxes specifically targeting AI or automation, on the basis that such measures could undermine Israel’s competitiveness and discourage technology investment.
Instead, the Finance Ministry is exploring broader taxes on passive income, offering a potential alternative to revenue streams traditionally generated through employment.
The proposed approach would not necessarily single out AI companies. Rather, it would reflect a broader fiscal question facing governments as automation reshapes how businesses generate profits: how to sustain public revenues when economic value increasingly comes from technology and capital rather than domestic labor.
For Israel, the challenge will be to broaden its tax base without weakening the investment environment that has helped establish its technology sector as a major economic driver.
FAQs:
What is Greece’s proposed crypto tax rate?
Greece’s draft bill proposes a 10% capital gains tax on crypto profits for individuals. The first €500 ($561) of annual gains would be exempt.
Can Greek crypto holders declare past gains without penalties?
Yes. The Greek draft bill allows holders to voluntarily declare past crypto gains within 12 months of the law’s publication, without penalties or interest. For inheritance and gift tax purposes, crypto would be valued in euros on the day before the tax liability.
What is the EU’s anti-corruption strategy?
It is a European Commission plan to strengthen corruption prevention, enforcement, and integrity across the EU, due in the fourth quarter of 2026. On October 8, MEPs adopted their anti-corruption priorities, including conflicts of interest, political financing, and crypto-asset risks.
How much does crypto tax vary across the EU?
EU crypto taxation is largely a matter of national law, so rates and exemptions vary by country. A Reuters report from June 5 cited rates ranging from 8% in Cyprus to 30% in France. Greece’s proposed 10% rate would sit near the low end.
Why is Israel considering new taxes because of AI?
Israel’s Finance Ministry fears AI could cut jobs and wages, shrinking income-tax revenue. Tech employees contribute more than a third of all tax income.
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