European Parliament lawmakers have overwhelmingly endorsed a far-reaching continent-wide tax-reporting rule for cryptocurrency transactions. With nearly 90% of votes cast in favor, this landmark decision sends a strong message about Europe’s commitment to combatting fraud in the burgeoning crypto market.
During the plenary session held on September 13 in Strasbourg, France, European legislators voiced their united support for imposing stringent tax reporting obligations on cryptocurrency exchanges. These rules, scheduled for implementation in 2026, aim to empower tax authorities across Europe with the tools needed to closely monitor crypto-asset trading and income, effectively reducing the likelihood of tax evasion.
The proposal, initially put forth by the European Commission in December 2022, sets the stage for crypto-asset service providers to play a pivotal role in reporting transactions made by their European clients. This development marks the third major discussion on the framework, with the Commission solidifying its general approach during the May meeting of the Economic and Financial Affairs Council.
Crucially, the Commission plans to modify the Directive on Administrative Cooperation (DAC), a cornerstone platform enabling tax authorities to exchange vital data. These changes include several minor adjustments designed to bolster the sharing of tax-related information, reinforcing Europe’s commitment to transparency in the crypto sector.
This landmark decision aligns with the European Union’s ongoing efforts to comprehensively regulate crypto assets. Earlier this year, EU finance ministers gave the green light to the Markets in Crypto-Assets (MiCA) legislation, a robust regulatory framework designed to close tax avoidance loopholes. These regulations swiftly came into effect in July, providing a more secure and transparent environment for cryptocurrency transactions within the European Union.
On a parallel track, Europe marked a significant milestone with the launch of its first spot Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam stock exchange on August 16. Named the Jacobi FT Wilshire Bitcoin ETF and bearing the ticker symbol BCOIN, this ETF operates under the regulatory authority of the Guernsey Financial Services Commission (GFSC), further highlighting Europe’s commitment to establishing a comprehensive and secure crypto market.
With these developments, Europe is clearly taking proactive steps to ensure the integrity of its crypto markets while also fostering innovation and investor confidence. The resounding support for the crypto tax reporting rule underscores the region’s determination to stay ahead in the ever-evolving world of digital assets.