EU Warns 12 Member States for Failing to Implement Crypto Tax Rules, Launches Infringement Proceedings

Odaily News The European Commission has intensified enforcement of the crypto-asset regulatory framework, initiating infringement proceedings against 12 member states for failing to implement or fully enforce EU crypto tax and market-related rules. The named countries include Belgium, Bulgaria, the Czech Republic, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal.

The European Commission stated that the aforementioned countries have failed to fully transpose Directive (EU) 2023/2226 into national law. This directive requires crypto-asset service providers to report certain user and transaction data to tax authorities to enhance cross-border information exchange and combat tax evasion and avoidance related to digital assets. The relevant countries have two months to respond and complete rectifications; otherwise, the cases may escalate and be referred to the Court of Justice of the European Union.

Furthermore, the European Commission has initiated separate proceedings against Hungary for not fully complying with the Markets in Crypto-Assets Regulation (MiCA), pointing out that the additional authorization and criminal liability requirements introduced by its domestic legislation are inconsistent with MiCA provisions, creating compliance uncertainty for market participants. The EU emphasized its commitment to ensuring the uniform application of crypto regulatory rules across all member states. (Crowdfund Insider)