Netherlands seeks public input on crypto tax regulations amid EU-wide crackdown News ▸ EU · Netherlands ▸ Regulation
Netherlands seeks public input on crypto tax regulations amid EU-wide crackdown
The Netherlands looks to boost crypto transparency with new tax regulations.
2 min read
Updated: Oct. 25, 2024 at 1:50 pm UTC
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The Netherlands has started a public consultation process to gather views on proposed regulations for crypto ownership and taxation, according to an Oct. 24 statement.
Authorities explain that the new proposal focuses on creating transparency around crypto holdings to curb tax evasion. Under this plan, crypto service providers, such as exchanges, would be required to collect, verify, and report user data directly to tax authorities.
These companies must also gather data on users residing in other EU nations. The Dutch Tax Administration would receive this information and exchange it with other EU tax agencies under the DAC8 regulation.
Between Oct. 24 and Nov. 21, the Dutch Ministry of Finance will receive feedback from the public and crypto service providers. This feedback will play a crucial role in finalizing the legislation to ensure it aligns with EU standards and the Netherlands’ tax policy goals.
The Ministry plans to submit the final version of the bill to the House of Representatives by mid-2025, aiming for the regulation to take effect in 2026.
State Secretary for Taxation and Tax Authorities Folkert Idsinga highlighted that the bill marks a significant milestone in crypto taxation, enhancing transparency and cooperation across EU member states.
Idsinga stated:
“In the future, EU member states will be able to cooperate better thanks to the exchange of data and transactions with cryptos will become transparent to tax authorities. This will combat tax avoidance and evasion and European governments will no longer miss out on tax revenues.”
Crypto taxation in Europe
The Netherlands’ move comes amid an ongoing effort across the European Union to enhance crypto tax regulation in the region.
Over the past weeks, several EU countries like Italy and Denmark have introduced proposals for high-tax regimes on crypto holdings.
However, market analysts caution that such stringent regulations may push talent and innovation out of Europe. They warn that these policies could also dissuade residents from investing in the emerging crypto industry.
Notably, Tether CEO Paolo Ardoino commented that these tax policies could limit freedoms for European citizens.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Tether Limited
Tether Limited is the company that introduced Tether (USD₮ or USDT), an asset-backed cryptocurrency stablecoin, in 2014.
