The European Union is working on a new data-sharing law requiring crypto companies to provide tax authorities with information about their clients' holdings. This legislation is based on a model from the Organization for Economic Cooperation and Development (OECD) and is set to be agreed upon by finance ministers in the upcoming week. Once in place, tax authorities can share data within the 27-nation bloc.
Unanimous Acclaim for Draft Bill
The draft bill, released to CoinDesk under freedom of information laws, has reportedly received unanimous acclaim at a recent meeting. However, some finance ministers have not received formal approval from their respective parliaments. The bill closely aligns with the European Commission's December 2022 proposals to prevent EU residents from hiding crypto assets abroad for tax evasion.
Register of Crypto Asset Operators by 2025
The European Commission must establish a register of crypto asset operators by December 2025, one year ahead of the previous deadline. The new rules will be applicable starting from January 1, 2026.
Inclusion of NFTs and Foreign Providers in DAC8
The eighth directive on administrative cooperation (DAC8) includes provisions for trading non-fungible tokens (NFTs) that can be used for payment or investment purposes. Providers outside the EU with EU clients will also be subject to the law. Overseas crypto firms can report to foreign authorities that adhere to EU norms.