Short Description: The EU cracks down, sending formal tax notices to 12 nations for failing to implement new crypto tax rules, while also calling out Hungary over MiCA compliance issues.
Read Time: 2 minutes, 15 seconds
Main Article:
The European Commission is tightening the screws on member states lagging in crypto regulation. In its latest enforcement action, the Commission has dispatched formal notices to twelve countries—Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal. These nations are accused of failing to fully transpose the EU crypto tax reporting rules into their national laws. This directive mandates that crypto asset service providers report detailed user and transaction data to tax authorities, aligning the bloc with the OECD’s global crypto tax framework to combat fraud and evasion. The countries now have two months to respond and rectify the situation or risk escalating legal proceedings.
In a parallel move highlighting the broader regulatory push, the Commission also sent a formal notice to Hungary concerning its adherence to the landmark Markets in Crypto Assets (MiCA) framework. Hungarian authorities introduced a national amendment affecting “exchange validation services” that has prompted some crypto providers to suspend operations. While aimed at strengthening anti-money laundering safeguards, the Commission stated these measures must remain compatible with MiCA’s harmonized rules. This action underscores the EU’s commitment to a unified regulatory approach, even as it clashes with national interpretations.
These enforcement steps come at a critical juncture in the MiCA implementation timeline. The comprehensive regulatory framework, passed in 2023, is being rolled out in stages. While the rules for stablecoin issuers are already active, the majority of provisions for crypto asset service providers will apply from July 1, 2024. Companies operating in the EU have until that date to ensure full MiCA compliance or cease offering services. This crackdown on member states signals that the EU is serious about enforcing both the new tax transparency rules and the broader MiCA regime, setting a precedent for crypto regulation enforcement across the 27-nation bloc and creating a standardized environment for the digital asset industry.
Short Summary:
The European Commission is enforcing its digital asset agenda, issuing formal notices to 12 countries for incomplete adoption of new crypto tax reporting rules and to Hungary over MiCA framework conflicts. These actions emphasize the EU’s drive for uniform crypto regulation and tax transparency as the key July deadline for MiCA compliance approaches, shaping a standardized legal landscape for crypto businesses across Europe.
