The European Union is implementing a new rule on cryptocurrencies to prevent tax evasion.
Thanks to the rule approved by European Union finance ministers yesterday, tax offices in the region will be able to exchange information about the cryptocurrencies owned by citizens residing in the EU.
The rule, which was first presented as a draft last year, will be implemented 20 days after its publication in the Official Gazette.
With these rules, stablecoins, qualified intellectual property titles (NFT), decentralized finance (DeFi) tokens and cryptocurrencies obtained through staking have also been included in the scope of a law already in force in the European Union.
According to this rule, known as the Eighth Directive on Administrative Cooperation (DAC8), cryptocurrency companies will provide information about the cryptocurrencies held by their customers and this will be automatically shared among tax authorities in the region.
The statement made by the European Commission on Tuesday is as follows:
“Thanks to this directive, which requires all crypto asset service providers in the European Union, regardless of size, to report transactions made by their customers residing in the EU, member states, tax evasion will be able to better detect and combat them better..”
The rule will also cover financial institutions dealing with electronic money and central bank digital currencies (CBDC).