The European Commission has recently approved a new tax directive for crypto companies within its jurisdiction. This directive, which encompasses a political agreement of the Council of Ministers of the European Union (EU), sets forth rules for fiscal transparency that must be adhered to by all companies facilitating cryptocurrency transactions for clients within the region.
European Commission Tightens Laws On Taxation In The Crypto Industry
This development marks a significant step in the European Union’s efforts to regulate the growing cryptocurrency sector. According to a press release from the Commission’s Directorate of Taxation and Customs Union, these new rules will come into effect on January 1, 2026. As a result, all crypto asset service providers (VASPs) will be required to report their customers’ transactions, irrespective of their magnitude.
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