EU One Step Closer to Adopting New Rules on Sharing Crypto Tax Data

DAC8 proposes that crypto asset service providers report client transactions to counter tax-related criminal activities such as tax evasion

article-image

symbiot/Shutterstock modified by Blockworks

share

European Union ambassadors unanimously support the eighth amendment (DAC8) to the Directive on Administrative Cooperation, as confirmed by Benjamin Angel of the European Commission.

Loading Tweet..

DAC8 proposes that crypto asset service providers report client transactions — both cross-border and domestic — in the hopes of countering tax-related criminal activities such as tax evasion.

Officials proposed the amendment in December of last year to address the fact that crypto assets were not included in the former framework.

“Trading on the crypto-market takes place without the involvement of classic financial institutions, such as banks, and without a central authority…The often high volatility of crypto-asset value does not make an accurate tax charge any easier,” which then makes it difficult for tax authorities to track transactions, the EU argued

Essentially, crypto asset service providers would make EU client transactions public to the tax authorities of the union’s respective member states.

With ambassador support, DAC8 could take effect before the Crypto-Asset Reporting Framework (CARF) is enacted in early 2026. 

Now that the EU ambassadors have supported DAC8, the Council of Economic and Financial Affairs will take a general approach before it is adopted. 

The EU recently passed the Markets in Crypto Assets regulation in April. It still awaits a formal council vote to finalize the regulation, which is expected on May 16. 

Though the framework will not be fully in effect until 2024, industry participants have praised the EU for its push to provide regulatory clarity.

The US has not received that same praise. In fact, US crypto companies, such as Coinbase, have claimed that the SEC is dragging its feet on regulatory clarity. Similarly, the US Chamber of Commerce has alleged that the SEC could be hurting innovation and economic growth.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Permissionless is a conference for founders, application developers, and users. Come meet the next generation of people building and using crypto.

recent research

Blinks Report Image.png

Research

Blinks enable the ability to vampire attack user monetization of existing networks by inserting onchain and financialized functionalities directly within the popular social feeds and digital experiences of today.

article-image

Plus, how the FTX collapse played out in Asian countries

article-image

Kalshi founder Tarek Mansour said Thursday marked the “the first trade on regulated election markets in nearly a century”

article-image

I was excited about being on the precipice of realigning societal incentives and solving many issues plaguing our modern financial world

article-image

Cypherpunk Holdings has rebranded to Sol Strategies in a pivot to a Solana-first investment approach

article-image

BitGo’s wrapped bitcoin (wBTC) has a new custodial challenger

article-image

Make no mistake: Tether makes a ton of money. But exactly how much depends a lot on the price of bitcoin.