Yesterday October 17, the European Union Council announced the adoption of new taxation rules. These rules mandate the crypto exchanges to share their customer holdings between tax authorities.
Last year December 8, these taxation rules which were otherwise called the DAC8 (Eight Directive on Administrative Cooperation) were first introduced to the EU Commission.
These rules were introduced in a bid to prevent assets from being laundered overseas through cryptocurrency.
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Moreover, the rules are unanimously supported by the European Union member states even though its deliberations are mainly done behind closed doors.
The scope of this directive comprises stablecoins, crypto-assets issued in a decentralized method, e-money tokens, and NFTs (Non-fungible tokens).
Quick Takes
- The new rule of sharing data between crypto firms and tax authorities will take effect automatically 20 days after its announcement in the official journal.
- According to the European Council, there will be an immediate exchange of information between the tax authorities that will be provided by reporting cryptocurrency assets service providers.
- The DAC8 law forces cryptocurrency firms to report the information on customer holdings which will be shared automatically between tax authorities.
- Furthermore, the European Commission which is in charge of introducing new European Union legislation yesterday said that the Eight Directive on Administrative Cooperation’s cryptocurrency provisions is in line with the newly concluded landmark MiCA (Markets in Crypto Assets) regulations as well as anti-money laundering laws under the TFR (Transfer of Funds Regulation).
- Meanwhile, the press officer for the EU Council, Johanna Store said that this new directive will be published in 2 weeks although the specific date hasn’t been set yet.
- These new rules will enhance Member States’ ability to catch and fight tax fraud, evasion, and avoidance by asking all EU-based cryptocurrency assets service providers, no matter their size to report transactions from their customers living in the European Union.
- Moreover, MiCA mandates cryptocurrency companies as well as exchanges to obtain the license to provide services across the bloc.
What’s Happening In Crypto Today?
As of the time of this writing, Bitcoin is changing hands at $28,379.77, with a decline in market cap by o.22% and a drop in trading volume by 42.60%.
On the side of Ethereum, its price right now is at $1,578.95, with a decline in market cap by 0.37% and a drop in trading volume by 35.10%.
- Meanwhile, Tether USDT is at present trading at $1.00, with an increase in market cap by 0.12% and a decrease in trading volume by 23.12%.
- BNB on the other hand is right at this moment selling at $213.02, with an increase in market cap by 0.05% and a decrease in trading volume by 27.23%.
