European Commission launches infringement proceedings against 12 countries for failing to implement rules on crypto-asset taxation and information sharing

The European Union (EU) has stepped up pressure on member states to implement rules governing the taxation and information transparency of crypto-assets (cryptocurrencies).

According to Crowdfund Insider on Feb. 2 (local time), the European Commission initiated infringement proceedings against member states that have not sufficiently transposed EU rules on crypto-assets into national law.

In a recent formal notice, the Commission said 12 member states—Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal—have not fully implemented rules on tax transparency for crypto-asset holdings and the exchange of information.

The move is based on EU Directive (EU) 2023/2226, which is centered on strengthening tax transparency for crypto-asset transactions by expanding transaction-reporting and information-sharing obligations for crypto-asset service providers. The directive revises the existing framework for administrative cooperation in taxation, mandating information exchange among member states.

The Commission indicated that failure to promptly incorporate the relevant rules into domestic legislation could lead to further legal steps.