European Commission May Require Crypto Providers to Report Tax Details

The European Commission may require crypto providers to report tax details, according to CoinDesk.

Documents obtained by CoinDesk show that the new law, inspired by international standards designed to curb crypto tax evasion, could also apply to stablecoins, derivatives and NFTs, and force even non-EU based crypto providers to register within the bloc, the document reveals.

The move is also needed to better enforce financial blocks placed on Russia, the document added, citing fears that "crypto-assets could be used as a means of avoiding sanctions" which focus on more traditional assets. Under the plans, crypto asset providers would have to collect and verify information about their users such as names, addresses, social security numbers and dates of birth, which would then be sent to the tax authorities in the user’s country of tax residence.