EU declares war on crypto tax evasion

Increasingly, the issue of tax evasion is debated. This is one of the issues of crypto regulation within the European Union. And stakeholders want to speed up the process of its adoption.

Crypto firms, pillars of the implementation of the measure?

The European Union (EU) recently took a giant leap forward with the adoption of the MiCA Crypto Regulation. From now on, the EU is pursuing another regulatory objective in this market: anti-tax evasion regulations. And it also seems that on this issue, things are moving forward.

Indeed, the representatives of member countries to the EU have unanimously supported the implementation of such regulations. This should essentially consist of an amendment to the directive on administrative cooperation. It is a supranational text whose purpose is to facilitate the exchange of information between EU member countries.

It is in fact a way for them to fight concretely against tax evasion within the community. This, by improving tax transparency between States. And it is precisely the improvement of the transparency of crypto activities that the integration of an amendment to this community standard particularly targets.

This amendment is, chronologically, the 8e modification that the directive on administrative cooperation should undergo. Hence its name “DAC8”. Introduced in December 2022, the DAC8 amendment aims to require crypto firms to make disclosures about their users’ transactions.

Thus, these would support the tax transparency policy advocated by the EU, ultimately making it possible to combat crypto tax evasion. It would be a way to circumvent the volatility that characterizes the crypto industry. An obstacle, which “does not facilitate the establishment of a precise tax burden”, according to the EU.

With the agreement of the representatives of the Member States of the community organization, a first step has been taken in this direction. Others have yet to follow before this change, announced for 2026, comes into force. In the meantime, the crypto industry is satisfied with the EU’s efforts to bring more clarity to the functioning of the market.

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