all about cryptop referances
The European Commission has set out to oblige platforms that process crypto transactions for EU citizens to share information with the tax authorities in the EU. According to the proposal, all crypto service providers, regardless of where they are based, will have to comply with the new rules.
The Brussels executive intends to push through new “tax transparency rules” for the crypto industry. The proposal announced on Thursday applies to all service providers that facilitate transactions in cryptoassets for customers resident in the EU, not just those based there.
At the moment, tax authorities in the bloc lack the information needed to monitor income gained from the use of cryptocurrencies, the European Commission (EC) insisted. They are limited in their ability to ensure that taxes are paid effectively while Europeans lose tax revenue, it said.
The new framework, intended to complement the Markets in Crypto Assets (MiCA) legislation and anti-money laundering rules agreed earlier this year, should improve member states’ ability to detect and counter tax fraud, tax evasion and tax avoidance. the commission elaborated.
The reporting requirements will apply to all providers of crypto services, regardless of size and location, who process transactions for customers resident in the EU. “Serious non-compliance” will trigger penalties with a set minimum level valid throughout the Union.
“Our proposal will ensure that member states get the information they need to ensure that taxes are paid on gains made from the trading or investment of crypto-assets,” commented Economy Commissioner Paolo Gentiloni. “It is also fully compliant with the OECD initiative on the Crypto Asset Reporting Framework,” he added.
The plan is to impose the new obligations on the crypto sector through changes to the Administrative Cooperation Directive (DAC). The EC also proposed to extend them to cover e-money and other digital currencies.
The draft proposal will be submitted to the European Parliament for consultations and to the Council of the European Union for decision. The European Commission expects the updated directive to be enforced on 1 January 2026.
What are your thoughts on the proposed tax reporting rules for crypto service providers in Europe? Tell us in the comments section below.
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