5BTC or 111% + 111 Free Spins!
New players only. Exclusive 111% Welcome Bonus + 111 Free Spins
The European Commission is escalating enforcement around crypto tax transparency and digital asset regulation, targeting multiple member states over delayed implementation.
Good to Know
The European Commission said it will issue formal notices to 12 countries for failing to fully apply new EU tax reporting rules covering digital assets. The move forms part of the January infringements package released on Friday.
According to the commission, Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal have not yet completed implementation of updated tax transparency and information exchange requirements for crypto assets. Each country will receive a formal letter and has two months to respond and comply.
The commission said failure to act within that period could lead to a reasoned opinion, a step that may precede legal action at EU level.
The tax directive expands the regulatory framework for digital assets across the European Union, requiring crypto asset service providers to report specific user and transaction data. The aim is to better address tax fraud, tax evasion and avoidance linked to emerging digital markets.
The approach aligns closely with the crypto reporting framework developed by the Organization for Economic Cooperation and Development, reflecting broader international coordination on crypto taxation.
Separately, the commission confirmed it had also sent a formal notice to Hungary over failures to comply with the Markets in Crypto Assets framework. Hungary now has two months to respond.
The commission noted that some crypto asset service providers in Hungary suspended or withdrew services following amendments to national law affecting exchange validation services. While the changes aimed to strengthen anti money laundering controls, the commission said national measures must remain compatible with MiCA.
MiCA implementation continues across the bloc after EU lawmakers approved the framework in 2023. Obligations for token issuers and crypto service providers have rolled out in phases, with most firms operating before December 2024 required to meet full compliance by July 1 or exit the market. Some member states chose shorter transition periods.
Several member states have not fully implemented EU crypto tax reporting rules.
Twelve countries, including Spain, the Netherlands, Poland and Portugal.
Member states have two months to comply or face further enforcement steps.
Hungary is accused of failing to align national rules with MiCA requirements.