The European Commission Releases New Transparency Rules For Crypto-Asset Transactions

On 8 December 2022, the European Commission proposed new tax transparency rules for service providers facilitating transactions in crypto assets for consumers residing in the European Union.

The proposal complements the Markets in Crypto – Assets Regulations (MiCA) and anti-money laundering rules.

The proposal constitutes the seventh amendment to the Directive for Administration Cooperation (DAC) and is consistent with the OECD initiative on the Crypto – Asset Reporting Framework (CARF) and the amendments to the OECD Common Reporting Standard (CRS).

The proposed regime describes how the features of crypto – assets create difficulties as to the traceability and detection of taxable events by the tax authorities.