EU Commission sends warning letters to 12 countries for failing to implement crypto-asset tax reporting guidelines

The European Commission has issued formal warning letters to 12 member states that have failed to properly implement new rules strengthening tax reporting obligations related to crypto-assets (cryptocurrencies).

According to Cryptopolitan on the 30th (local time), the Commission announced its "January infringements package" and said it had sent letters of formal notice to 12 countries: Belgium, Bulgaria, the Czech Republic, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal.

The move follows member states’ failure to fully transpose into national law the EU’s "Directive on Administrative Cooperation, 8th amendment (DAC8)." DAC8 requires crypto-asset service providers (CASPs) to mandatorily collect customers’ transaction information and report it to tax authorities, in an effort to prevent crypto-assets from being used as a vehicle for tax evasion.

A letter of formal notice is the first step in the procedure triggered by breaches of EU law. The countries must, within the next 2 months, align the relevant legislation or remedy the shortcomings flagged by the Commission. The Commission said, "We must ensure that crypto-asset activities do not fall outside the oversight of tax authorities," urging swift implementation by member states.