EU Lawmakers Pass New Crypto Reporting Law With Overwhelming Support

Republished By Plato

Followers: 0

European Parliament legislators overwhelmingly voted last week in favor of the eighth version of the Administrative Cooperation Directive (DAC8), which addresses the reporting of taxes on cryptocurrencies in Strasbourg, France. The directive garnered a resounding show of support, with 535 members casting their votes in favor and a mere 57 opposing it, while 60 members opted to abstain from voting.

DAC8 seeks to equip tax authorities with the necessary tools to monitor and evaluate all cryptocurrency transactions carried out by entities or individuals residing within the member nations.

According to estimates provided by the European Commission via the European Parliamentary Research Service (EPRS), the introduction of DAC8 could potentially generate additional tax revenue ranging from $1.07 billion to $2.5 billion annually. The DAC8 directive delineates two distinct categories of entities mandated to provide information to local authorities: crypto-asset providers, offering one or more services to external parties, and crypto-asset operators, rendering crypto-asset services apart from those offered by crypto-asset service providers. These entities, collectively referred to as reportable crypto-asset service providers (RCASPs), must adhere to DAC’s reporting requisites if they possess reportable users within the EU, regardless of size or location.

The directive casts a broad net over all forms of crypto assets employed for investment and payment transactions. It explicitly encompasses e-money, e-money tokens and central bank digital currencies (CBDCs). The array of transactions considered reportable by RCASPs spans exchanges of crypto assets, transfers involving reportable crypto assets, conversions of reportable crypto assets into fiat currencies and intercrypto asset transactions.

The recent vote marked the concluding step preceding the official implementation of DAC8. European Union (EU) member states will be required to adopt and enforce these regulations by Dec. 31, 2025, with the rules taking effect on Jan. 1, 2026.

DAC was sanctioned in May 2023 following the approval of the Markets in Crypto-Assets (MiCA) legislation. The “8” in the revised program’s title signifies its eighth iteration, with each preceding directive addressing distinct facets of financial oversight.

However, some critics of DAC8 have voiced concerns about its lack of differentiation from the Crypto-Asset Reporting Framework (CARF) and its potential to diminish the autonomy of individual member states. Max Bernt, Blockpit’s chief legal officer, articulated these apprehensions earlier this year. He specifically highlighted the burdensome requirement for RCASPs to individually assess whether a transferred crypto asset necessitates reporting and the risk of redundant reporting as legislators navigate the complexities of existing and forthcoming regulations.

Major companies such as Canaan Inc. (NASDAQ: CAN) will be watching to see how these new rules are implemented in the EU region and how other jurisdictions will respond to these regulatory changes.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 77948 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com

CryptoCurrencyWire is powered by IBN