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The European Commission has decided to oblige platforms dealing with crypto transactions for EU residents to share information with tax authorities in the Union. According to the proposal, all crypto service providers, regardless of where they live, will have to abide by the new rules.
EU considering new reporting requirements for crypto platforms serving European users
The executive branch in Brussels intends to push through new tax transparency rules for the crypto industry. The proposal announced on Thursday affects all service providers facilitating transactions in crypto assets for customers residing in the EU, not just those based there.
At present, the bloc’s tax authorities do not have the necessary information to control products obtained using cryptocurrencies, the European Commission (EC) insisted. They are limited in their ability to ensure effective payment of levies as Europeans lose tax revenue, he said.
The new regulations, intended to complement the Crypto-Asset Markets (MiCA) legislation and anti-money laundering rules agreed earlier this year, are expected to improve member states’ ability to detect and tackle tax evasion, tax evasion and tax evasion, the Commission said.
The reporting requirements will apply to all crypto service providers, regardless of size and location, that process transactions from customers residing in the EU. Serious non-compliance will result in sanctions of a defined minimum level valid throughout the Union.
Our proposal will ensure that member states get the information they need to ensure taxes are paid on gains made from trading or investing in crypto assets, commented Economics Commissioner Paolo Gentiloni. It is also fully compliant with the OECD Crypto Asset Reporting Framework initiative, he added.
The plan is to impose the new obligations on the crypto industry through amendments to the Administrative Cooperation Directive (DAC). The EC also suggested extending them to cover e-money and other digital currencies.
The draft proposal will be submitted to the European Parliament for consultation and to the Council of the European Union for adoption. The European Commission expects the updated directive to enter into force on January 1, 2026.
Tags in this story commission, council, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, directive, CE, Europe, European commission, European Parliament, Europeans, MiCA, proposal, Regulations, reports, requirements, rules, providers services, Tax, Taxation, Taxes
What do you think of the proposed tax reporting rules for crypto service providers in Europe? Tell us in the comments section below.
Lubomir Tassev
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