Fri, March 29

Brussels Proposes Stringent Tax Reforms For Crypto Sector

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  • All crypto service providers will be subject to the reporting obligations.
  • The proposal will be presented to the EU Council for review.

Countries across the globe are stepping up regulations due to recent events that have unfolded in the crypto market. New “tax transparency rules” for the cryptocurrency sector are on the agenda of Brussels’ executive authority. Not only EU-based service providers. But any service providers that facilitate transactions in crypto assets for EU consumers are affected by the plan presented on Thursday.

European Commission (EC) officials have stressed that tax authorities in the union currently lack the data necessary to monitor revenues acquired through cryptocurrency. While tax revenues in Europe are declining, they can do nothing to assure that taxes are paid in full.

Mandatory Reporting Obligations

The Commission elaborated that the new regulations are meant to supplement the Markets in Crypto-assets (MiCA) legislation. And the anti-money laundering rules agreed upon earlier this year. Moreover, that doing so should enhance the capacity of member states to recognize and confront tax fraud, tax evasion, and tax avoidance.

All crypto service providers, no matter how big or far away they are, who handle transactions from EU customers, will be subject to the reporting obligations. There will be minimal level Union-wide fines for “serious non-compliance.”

The new regulations for the crypto industry will be implemented through changes to the Directive for Administration Cooperation (DAC). The European Commission proposed to include electronic money and other forms of digital currency.

The proposal will be presented to the EU Council for review and eventual approval once it has been discussed in the European Parliament. The European Commission has set January 1, 2026, as the implementation date for the revised Directive.

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A diploma graduate who is passionate about digital currency and loves writing. He loves the concept of crypto and keeps himself up to date with the latest development and news of the crypto world.