The European Commission announced that it’ll send formal notices to 12 countries for failing to completely implement the EU's tax reporting rules for digital assets.
In its January infringement package published on Friday, the Commission, which is the European Union body liable for proposing laws and ensuring that member states comply with certain laws and regulations, said that Belgium, Bulgaria, the Czech Republic, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal would want to receive letters of formal notice “so as to fully implement the brand new tax transparency and knowledge exchange rules for crypto assets.”
Citing EU guidelines, the Commission said it will give member states two months to answer the letter and comply, otherwise it could “resolve to issue a reasoned opinion.”
The Commission's Tax Directive, which expanded the EU's regulatory framework for digital assets, requires Member States to “adapt to latest developments in several markets and consequently effectively combat identified tax fraud, tax evasion and tax avoidance behaviors” by requiring crypto asset service providers to report certain user and transaction data.
The approach was more aligned with the Organization for Economic Co-operation and Development (OECD) crypto framework.
In the identical notice, the Commission also cited a letter of formal notice sent to the Hungarian authorities for non-compliance with the EU Framework for Markets in Crypto Assets (MiCA), giving the country two months to reply.
According to the Commission, some crypto asset service providers have suspended or discontinued certain services attributable to a change within the Hungarian law on “Exchange Validation Services”.
“While Hungary seeks to strengthen anti-money laundering (AML/CFT) safeguards, such measures must remain compatible with MiCA,” the European Commission said.
The MiCA framework is progressing
Since MiCA was passed by EU lawmakers in 2023, requirements for token issuers and crypto asset service providers have been progressively implemented to permit firms to comply with the regulations.
Under the regulatory framework, most crypto firms operating before December 2024 have until July 1 at the newest to comply with all MiCA requirements or stop offering their services, although some member states have shortened this compliance window.
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