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The European Union is considering a new draft bill that would require cryptocurrency companies to disclose their clients' holdings to tax authorities. This move, if implemented, would enable tax authorities to scrutinize cryptocurrency transactions more closely and combat potential tax evasion. The draft bill was recently made public under freedom of information laws by CoinDesk.
Next week, finance ministers are expected to approve a data-sharing law based on the model created by the Organization for Economic Cooperation and Development (OECD). This law would enable tax authorities across the European Union's 27 member states to share data with one another. Commission officials have stated that the bill was received positively at a recent meeting, receiving unanimous approval. However, individuals familiar with the matter have informed CoinDesk that some finance ministers have not yet obtained formal approval from their respective parliaments.
A bill dated May 5th aligns closely with the European Commission's proposals from December 2022, which aimed to prevent EU residents from hiding cryptocurrency abroad to avoid taxation. The bill mandates the establishment of a register of crypto asset operators by the European Commission no later than December 2025, bringing forward a previous deadline by a year. The new rules will come into effect from January 1, 2026.
Despite controversy, the eighth directive on administrative cooperation (DAC8) continues to cover non-fungible token trading platforms that enable payments or investments, as well as providers based outside the European Union that have clients within the bloc.
Foreign crypto companies are allowed to disclose information to foreign regulatory bodies that comply with EU standards.
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Source Coindesk
