The European Commission has launched formal proceedings against a dozen member states for failing to fully incorporate new tax transparency rules for crypto, in an effort to harmonize taxation and information sharing on digital assets.
The European Commission has launched formal infringement procedures against 12 EU member states for failing to fully implement the bloc’s new crypto-asset tax transparency rules, underscoring Brussels’ push to tighten oversight of digital assets across the region. The move targets countries that have not yet transposed the updated framework into national law, despite clear deadlines.
The countries named in the procedure include Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal. These states have now received official notices and are granted two months to respond and outline corrective actions before the Commission considers further steps.
At the center of the dispute is DAC8, the latest update to the EU’s Directive on Administrative Cooperation, which extends tax reporting requirements to crypto-asset service providers. The rules are designed to ensure that transactions involving cryptocurrencies, stablecoins and other digital assets are properly tracked and shared among national tax authorities.
Under DAC8, crypto platforms operating in the EU must collect and report detailed information on users, including transaction volumes and account balances. This data will then be exchanged automatically between tax authorities, bringing crypto assets closer to the reporting standards already applied to traditional financial instruments.
Brussels intensifies its oversight of compliance with crypto tax rules
European officials argue that uneven implementation risks creating regulatory blind spots and encourages tax arbitrage, where crypto users shift activity to jurisdictions with looser enforcement. By enforcing harmonized rules, Brussels aims to curb tax evasion and strengthen fiscal oversight in an increasingly digital financial landscape.
European officials argue that uneven implementation risks creating regulatory blind spots and encourages tax arbitrage, where crypto users shift activity to jurisdictions with looser enforcement. By enforcing harmonized rules, Brussels aims to curb tax evasion and strengthen fiscal oversight in an increasingly digital financial landscape.
If the targeted countries fail to comply, the Commission may escalate the process by issuing a reasoned opinion, a step that could ultimately lead to referrals to the Court of Justice of the European Union. For now, the message is clear: crypto taxation and transparency are no longer optional within the EU’s regulatory agenda.
