EU members agree on new tax rules on cryptocurrency

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Rules to require service providers to report clients' income from crypto transactions to be automatically transferred to member states.

EU countries on Tuesday agreed on new tax transparency rules related to crypto-assets, aiming to prevent fraud in the bloc.

In an EU Council meeting in Brussels, finance ministers came to a political agreement on the rules covering crypto-asset service providers serving clients in the EU.

The measures extend an existing directive and require financial institutions to report the income that their clients, especially wealthy individuals, receive from cryptocurrency transactions.

This information will then be automatically shared with the tax administrations other member states, closing a loophole that allowed cryptocurrencies to be used for tax evasion.

Set to go into effect in 2026, the measures still need official approval from member states to come into effect.

"Final adoption of the new rules will be possible when the consultative opinion of the European Parliament becomes available," said the press release.

Copyright Greekcitytimes 2024