The EU has warned 12 member states that they have failed to implement crypto tax rules and has initiated infringement proceedings.

The European Commission has intensified its enforcement of the regulatory framework for crypto assets, initiating infringement proceedings against 12 member states for failing to implement or fully enforce EU rules related to crypto taxation and markets. The named countries include Belgium, Bulgaria, Czech Republic, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, Netherlands, Poland, and Portugal. The Commission stated that these countries failed to fully transpose Directive (EU) 2023/2226 into their domestic law. This directive requires crypto asset service providers to report certain user and transaction data to tax authorities to strengthen cross-border information exchange and combat tax evasion and avoidance related to digital assets. The relevant countries must respond and rectify the issues within two months; otherwise, the cases may escalate and be submitted to the European Court of Justice. Furthermore, the Commission has initiated separate proceedings against Hungary for incomplete compliance with the Crypto Asset Market Regulation (MiCA), pointing out that the additional authorizations and criminal liability requirements introduced by its domestic legislation are inconsistent with MiCA provisions and have created compliance uncertainty for market participants. The EU emphasized that it will ensure the uniform implementation of crypto regulatory rules across member states. (Crowdfund Insider)