The Netherlands is taking steps to regulate crypto ownership and taxation through a public consultation process, as announced on October 24.
The proposed regulations aim to increase transparency around crypto holdings to combat tax evasion. Crypto service providers, including exchanges, would be required to collect, verify, and report user data directly to tax authorities under the new plan.
Additionally, these companies must also gather information on users from other EU countries. The Dutch Tax Administration would then share this data with other EU tax agencies in accordance with the DAC8 regulation.
From October 24 to November 21, the Dutch Ministry of Finance will be gathering feedback from the public and crypto service providers. This input will be crucial in finalizing the legislation to ensure it aligns with EU standards and the tax policy objectives of the Netherlands.
The Ministry aims to present the final version of the bill to the House of Representatives by mid-2025, with the regulation expected to come into effect in 2026.
Folkert Idsinga, State Secretary for Taxation and Tax Authorities, emphasized the importance of the bill in enhancing transparency and cooperation among EU member states in terms of crypto taxation.
“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’ initiative is part of a broader effort within the European Union to strengthen crypto tax regulations in the region.
In recent weeks, countries like Italy and Denmark have also introduced proposals for stricter tax regimes on crypto holdings.
However, some market analysts caution that overly stringent regulations could drive talent and innovation away from Europe. They suggest that these policies might deter residents from investing in the growing crypto industry.
Tether CEO Paolo Ardoino has expressed concerns that these tax policies could limit the freedoms of European citizens.