EU Unveils Sweeping Crypto Transparency Law: Tax Authorities Gain Insights
In a recent development, the European Union has passed a groundbreaking law that necessitates cryptocurrency companies to divulge their customers' holdings.
Under this new regulation, these customer records will be automatically exchanged with tax authorities. This significant announcement was made by the European Council on a recent Tuesday.
This directive casts a wide net, covering various aspects of the cryptocurrency world, including stablecoins, non-fungible tokens (NFTs), e-money tokens, and crypto-assets issued in a decentralized manner.
The European Council underlined the requirement for crypto-asset service providers to participate in an obligatory, automated sharing of information with tax authorities. This directive, recognized as the Eighth Directive on Administrative Cooperation (DAC8), was initially proposed to the European Commission in the final month of 2022.
The directive will soon find its place in the Official Journal, which serves as the European Union’s official register for legal acts. Following publication, it is set to become effective after a 20-day grace period.
While specifics about the exact publication date remain forthcoming, Johanna Store, an official from the European Council, revealed to Forkast that the directive will be accessible to the public within the next two weeks.
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The European Council emphasizes that DAC8 complements the existing Markets in Crypto-Assets (MiCA), which serves as the European Union’s regulatory framework for digital assets. MiCA mandates that cryptocurrency companies and exchanges acquire licenses for operations within the EU. Furthermore, it imposes an obligation on stablecoin issuers to maintain suitable reserves.
On October 5, 2023, the European Securities and Markets Authority (ESMA) unveiled its second consultation paper concerning MiCA, demonstrating ongoing efforts to refine regulations governing digital assets in the European Union.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
