The finance ministers of the European Union have officially agreed to new rules that allow tax authorities to share information about individuals' cryptocurrency holdings.
The finance ministers of the European Union have officially agreed to new rules that allow tax authorities to share information about individuals' cryptocurrency holdings. The restrictions, known as the Eighth Directive on Administrative Cooperation (DAC8), are intended to prevent the concealment of assets overseas through the use of cryptocurrencies. Stablecoins, non-fungible tokens (NFTs), decentralized finance (DeFi) tokens, and income from crypto staking are all included by the legislation.
According to DAC8, cryptocurrency companies would be compelled to report information on their clients' holdings, which will be immediately shared with tax authorities. According to the European Commission, new provisions will supplement existing regulations such as the Markets in Crypto Assets Regulation (MiCA) and anti-money laundering rules under the Transfer of Funds Regulation (TFR). Financial institutions are also covered by the rules in terms of electronic money and central bank digital currencies (CBDC).
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