Brussels wants all crypto service providers to report Europeans’ transactions

The European Commission is moving to require platforms handling crypto transactions for EU residents to share information with EU tax authorities. Under the proposal, all crypto-currency service providers, regardless of where they are based, will have to comply with the new rules.

EU considers new reporting requirements for crypto-currency platforms serving European users

The executive branch in Brussels intends to push through new “tax transparency rules” for the crypto-currency sector. The proposal announced Thursday affects all service providers facilitating crypto asset transactions for customers residing in the EU, not just those based there.

Currently, tax authorities across the bloc do not have the information needed to monitor proceeds obtained through the use of crypto-currencies, the European Commission (EC) insisted. They are limited in their ability to ensure that levies are actually paid while Europeans lose tax revenue, it said.

The new regulation, intended to complement legislation on crypto-asset markets (MiCA) and anti-money laundering rules agreed earlier this year, should improve member states’ ability to detect and counter tax fraud, evasion and avoidance, the Commission said.

The reporting requirements will apply to all crypto-currency service providers, regardless of their size and location, who process transactions from customers residing in the EU. “Serious non-compliance“will trigger penalties with a determined minimum level valid throughout the Union.

“Our proposal will ensure that member states get the information they need to ensure that taxes are paid on gains made by trading or investing in crypto-assets“, commented the Commissioner for the Economy Paolo Gentiloni. “It is also fully compatible with the OECD’s crypto asset reporting framework initiative“, he added.

The plan is to impose the new obligations on the crypto-currency sector by amending the Administrative Cooperation Directive (ACD). The EC has also suggested extending them to e-money and other digital currencies.

The draft proposal will be submitted to the European Parliament for consultation and to the Council of the European Union for adoption. The European Commission expects the updated directive to enter into force on January 1, 2026.