The European Commission has called on 12 member states to fully implement the EU's tax reporting rules for digital assets. This action underscores the Commission's commitment to tackling tax evasion and ensuring fair taxation within the European Union, particularly in the rapidly evolving realm of cryptocurrencies.
The new rules are designed to close tax avoidance loopholes and reduce the risk of cryptocurrencies being used for tax fraud. डिजिटल एसेट से होने वाली आय को ट्रैक करने में कर अधिकारियों को आने वाली चुनौतियों का समाधान करके सदस्य राज्यों को महत्वपूर्ण कर राजस्व के नुकसान को कम करने में मदद करने का भी लक्ष्य है, जिसे आसानी से सीमा पार कारोबार किया जा सकता है.
Under the new rules, all crypto asset service providers (CASPs) operating in the EU, regardless of size, will be required to report transactions made by customers residing in its territory. In addition, there will be an automatic exchange of tax decisions between EU Member States regarding high-net-worth individuals to prevent attempts to evade taxes. There will also be a new Markets in Crypto Assets (MiCA) regulation that will ensure that asset service providers protect customers' digital wallets. Another rule regarding the transfer of funds will also strengthen oversight of crypto asset transactions.
The EU intends to gradually implement the rules starting in July 2024. The European Parliament approved for the first time common rules for all member countries that will regulate the use of various crypto assets, including popular cryptocurrencies such as Bitcoin and Ethereum, as well as tradable tokens protected by blockchain technology, such as NFTs. During a recent meeting, EU economy and finance ministers agreed on stricter rules to combat individuals who use crypto assets to evade taxes in areas where authorities have limited control.
In related news, the Commission has also sent Bulgaria a letter of formal notice for failing to communicate the complete transposition of directives covering various areas, including tax transparency and information exchange regarding crypto-assets. Furthermore, Hungary has been singled out for not complying with the EU's MiCA framework following an amendment to a local law.
These developments demonstrate the European Commission's proactive stance in establishing a comprehensive regulatory framework for crypto assets, ensuring tax compliance, and fostering innovation within the digital economy. The Commission's actions signal a clear message that the EU is committed to adapting to the evolving landscape of cryptocurrencies and addressing the challenges they pose to traditional taxation systems.
