The Dutch government intends for the public to participate in a survey they have developed concerning a new bill requiring all cryptocurrency service providers to report their client's data to the local tax office. This move complies with new EU rules to increase the visibility of people who own cryptocurrencies and fight against tax fraud and evasion.
The Netherlands Ministry of Finance clarified that the bill imposes no new obligations on cryptocurrency holders who must disclose their holdings to the Dutch tax authority, Belastingdienst.
Under the new legislation, data gathered by crypto service providers about EU residents will be shared with the tax authorities of respective EU countries. This arrangement adheres to the DAC8 guidelines introduced last year to standardize crypto tax reporting across the EU. The protocol simplifies the reporting process for service providers by limiting their reporting obligations to the EU member state in which they are registered.
Folkert Idsinga, the state secretary for tax affairs and the tax administration, emphasized that the proposed bill marks a significant advancement in cryptocurrency taxation. By facilitating data exchange between tax authorities, the bill aims to render cryptocurrency transactions more transparent, thereby curbing tax-related malpractices and ensuring that European governments capture potential tax revenues effectively.
The bill also states that the reported data will be shared with non-EU countries in the Crypto-Assets Reporting Framework (CARF), adopted by 47 countries, including the United States, United Kingdom, Canada, Australia, and Singapore. This international collaboration points to efforts toward having a level ground in the financial sector courtesy by mitigating the challenges posed by the opaque nature of crypto transactions.
The Dutch Central Bank (DNB) has previously enforced registration requirements for crypto service providers, which were introduced in April 2022. The DNB has been stringent in its oversight, imposing fines on major exchanges like Binance and Coinbase for non-compliance. These fines underscore the regulatory intent to uphold high standards within the crypto market, reflecting a broader commitment to legal and fiscal propriety within the Netherlands and beyond.
The government is expected to present the proposed new rules to the Dutch House of Representatives in the second quarter of 2025; stakeholders can submit their input by November 21.