EU Aims to Require Crypto Providers to Report Transaction Data

The European Union proposed new rules Thursday to combat tax fraud and evasion in the crypto sector by requiring all digital asset service providers to report transactions involving customers residing in the bloc.

The initiative by the EU’s executive arm, part of a package to increase the transparency in the tax system, aims to ensure that the bloc’s residents pay taxes on gains from trading or investing in crypto assets. It would establish a common minimum level of penalties for cases of serious non-compliance, including the absence of reporting despite reminders.

“The cover of anonymity, the fact that there are ...