Crypto: European Commission Calls On 12 Countries To Implement Crypto Tax...
The commission also singled out Hungary for failing to comply with the EU's MiCA framework after an amendment to a local law.
The European Commission said it will send formal notices to 12 countries for failing to fully implement the EU’s tax reporting rules for digital assets.
In its January infringements package released on Friday, the commission, which serves as the European Union body responsible for proposing legislation and ensuring member states follow certain laws and regulations, said Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal would face letters of formal notice "to fully implement the new tax transparency and information exchange rules on crypto-assets."
Citing EU directives, the commission said it would give the member states two months to respond and comply with the letter or it “may decide to issue a reasoned opinion.”
The commission’s directive on taxes, which expanded the EU’s regulatory framework concerning digital assets, requires member states “to adapt to new developments of different markets and consequently to effectively tackle identified conducts of tax fraud, tax evasion and tax avoidance” by having crypto asset service providers report certain user and transaction data.
The approach was more aligned with the Organization for Economic Cooperation and Development (OECD)’s crypto framework.
Related: France flags 90 unlicensed crypto companies ahead of MiCA cutoff: Report
In the same notice, the commission also cited a letter of formal notice sent to authorities in Hungary for failing to comply with the EU’s Markets in Crypto Assets (MiCA) framework, giving the country two months to respond.
According to the commission, some crypto asset services providers have suspended or discontinued certain services under an amendment to Hungarian law concerning “exchange validation services.”
“While Hungary aims to strengthen anti money laundering (AML/CFT) safeguards, such measures must remain compatible with MiCA,” said the European Commission.
Source: CoinTelegraph
