What does the EU want to do with cryptocurrencies
The draft text will be presented to the European Parliament for consultation and to the Council for adoption. Suppliers will be obligated to report all transactions. EU clampdown on cryptocurrency activities expected to take effect from 1 January 2026
While the Italian government is studying an ad hoc taxation for Bitcoin & co, the European Commission is also proposing new rules on the matter. In particular, Brussels aims to increase “tax transparency for all service providers that facilitate crypto-asset transactions for customers residing in the European Union”. These rules are designed to complement the crypto-asset markets regulation (MiCA) and anti-money laundering rules.
THE EU: MORE INFORMATION ON ACTIVITIES WITH CRYPTOCURRENCIES TO THE FISCO
“Fair and effective taxation – reads the note issued by Brussels regarding the new regulatory package – is essential to guarantee revenues for investments and public services and at the same time lays the foundations for a business environment in which innovation can flourish. Tax authorities, however, currently lack the information needed to monitor proceeds obtained using crypto-assets, which are easily traded cross-border. This – the Commission thinks – severely limits their ability to ensure that taxes are actually paid, which leads to huge losses of tax revenue for European citizens.
“Anonymity – said Paolo Gentiloni , Commissioner for the Economy – allows many users of crypto-assets who make significant profits to escape the controls of national tax authorities. This is unacceptable. Our proposal . added the European government official – it will ensure that member states obtain the information they need to ensure that taxes are paid on profits made in trading or investing in crypto-assets. It is also fully consistent with the OECD initiative on the crypto-asset reporting framework and the EU regulation on crypto-asset markets,” Gentiloni said.
According to the Commission, the new rules will improve the ability of member states to detect and fight tax fraud, evasion and avoidance, by requiring all service providers for crypto-assets – regardless of their size or where they are established – to report the transactions of clients residing in the EU.
The directive – they continue from Brussels – also aims to establish a common minimum level of sanctions for situations of serious non-compliance, such as the total absence of communication despite administrative reminders. The Commission also proposed to extend the reporting obligations of financial institutions to electronic money and digital currencies and the scope of the automatic exchange of information to advance cross-border rulings used by high net worth individuals.
THE LEGISLATIVE PROCESS
The proposal, which takes the form of an amendment to the Administrative Cooperation Directive (DAC), is consistent with the OECD's Crypto Asset Reporting Framework (CARF) initiative and the amendments to the common reporting standard. OECD Communication (CRS).
The draft text will be presented to the European Parliament for consultation and to the Council for adoption. The new reporting requirements relating to crypto-assets, e-money and digital currencies are expected to take effect on January 1, 2026.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/cosa-vuole-fare-lue-con-le-criptovalute/ on Mon, 12 Dec 2022 06:46:50 +0000.