The European Commission to make all crypto companies to inform the tax authorities about the operations of EU clients
The European Commission has proposed new rules that will affect crypto companies around the world. According to the document, all companies working with cryptocurrencies will be required to inform the tax authorities about the tax details of their European users.
The changes will also affect those companies that do not have branch offices in the EU. Digital asset service providers will have to provide the tax authorities with personal information of clients, including the place of residence, date and place of birth, and amount spent on the purchase of cryptocurrencies and the revenue from its sale.
The representatives of the European Commission said that the tax authorities do not have enough information to track the revenue received from the sale of cryptocurrencies abroad. This limits the ability of tax authorities to effectively take taxes. As a result, EU citizens lose important tax proceeds.
The rules will apply to cryptocurrencies, stablecoins and NFT. Moreover, it is proposed to monitor trans-border transactions of wealthy citizens in order to prevent the concealment of large fortunes from tax authorities.
According to the European Commission, such an initiative could increase tax revenues by €2.4 billion per year. Officials also believe that the new rules will have a beneficial effect on the crypto sphere itself in the future.
The Commission thinks that the changes may go into effect in 2026.
Earlier, representatives of the European Central Bank said that preparations for the digital euro establishment will begin at the end of 2023. The launch of the digital currency is expected in 2026. ECB President Christine Lagarde has reported that in the near future the European Commission may introduce a bill giving the digital euro the status of a legal tender money.