The European Commission wants to make it mandatory for platforms handling cryptocurrency transactions for EU citizens to share information with Union tax authorities. The proposal states that the new regulations will apply to all crypto service providers, regardless of where they are based.
New Reporting Requirements for Crypto Platforms Serving European Users are Being Considered by the EU
Brussels’ executive branch wants to impose new “tax transparency rules” on the cryptocurrency sector. The proposal, which was made public on Thursday, applies to all service providers—not just those based in the EU—who help customers transact in digital assets.
According to the European Commission (EC), tax authorities in the bloc do not currently have the data necessary to monitor proceeds obtained through the use of cryptocurrencies. They are unable to effectively ensure that levies are paid while Europeans lose tax revenue, it claimed.
The new regulations should enhance member states’ capacity to identify and combat tax fraud, tax evasion, and tax avoidance, the Commission explained. They are intended to complement the Markets in Crypto-assets (MiCA) legislation and the anti-money laundering rules agreed upon earlier this year.
Regardless of their size or location, all crypto service providers that handle transactions for customers living in the EU will be subject to the reporting requirements. Penalties with a predetermined minimum level that are applicable throughout the Union are triggered by “serious non-compliance.”
Commissioner for Economy Paolo Gentiloni stated, “Our proposal will ensure that member states get the information they need to ensure that taxes are paid on gains made in trading or investing in crypto assets. Additionally, it is completely in line with the OECD’s initiative regarding the Crypto Asset Reporting Framework, he continued.
The idea is to amend the Directive for Administrative Cooperation in order to impose the new obligations on the cryptocurrency industry (DAC). They should be expanded to include e-money and other digital currencies, according to the EC.
The draught proposal will be brought before the European Parliament for comments and the European Council for adoption. On January 1, 2026, the European Commission anticipates that the revised Directive will come into effect.