EU: European Commission proposes new tax transparency rules for service providers facilitating cryptoasset transactions
New tax transparency rules for all service providers facilitating transactions in cryptoassets for customers resident in the EU proposed
Tax transparency rules for all service providers facilitating transactions in cryptoasset
The European Commission (EC) today proposed new tax transparency rules for all service providers facilitating transactions in cryptoassets for customers resident in the EU.
According to today’s EC release, the proposed rules would complement existing EU regulations relating to cryptoassets and EU anti-money laundering rules and improve member states' ability to detect and counter tax fraud, tax evasion and tax avoidance.
The EC also suggested extending both reporting obligations of financial institutions to cover e-money and digital currencies and the scope of the automatic exchange of information to advance cross-border rulings used by high net-worth individuals.
The proposed rules, which would take the form of an amendment to the Directive for Administration Cooperation (DAC), is consistent with the OECD initiative on the Crypto-Asset Reporting Framework (CARF) and the amendments to the OECD Common Reporting Standard (CRS).
The draft text will be submitted to the European Parliament for consultation and to the Council for adoption. It is expected that the new rules would become effective 1 January 2026.
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