EU targets states over crypto tax rules

The European Commission has opened infringement procedures against multiple member states for failing to implement new EU rules on crypto-asset taxation and market oversight.

The Commission said it sent letters of formal notice to 12 countries, including Belgium, Spain and the Netherlands, for not fully transposing Directive (EU) 2023/2226 on tax transparency for crypto-assets into national law.

The directive extends EU information-sharing and reporting requirements to crypto-asset service providers, aiming to combat tax fraud, evasion and avoidance linked to digital assets.

Under the rules, crypto firms must report certain user and transaction data to tax authorities, enabling cross-border information exchange across the bloc.

The 12 countries now have two months to respond and complete implementation, after which the European Commission may escalate the cases toward action before the EU’s top court.

Separately, the Commission also launched an infringement procedure against Hungary over alleged non-compliance with the EU’s crypto rulebook, Markets in Crypto-Assets Regulation.

The Commission said Hungary’s national changes have created legal uncertainty for crypto firms and clients, underscoring Brussels’ determination to ensure uniform application of EU crypto rules as digital assets enter mainstream finance.