According to a statement on October 24, the Netherlands has launched a public consultation process to gather opinions on proposed regulations regarding the ownership and taxation of virtual currencies.
Officials explain that the new proposal focuses on increasing transparency regarding cryptocurrency holdings to curb tax evasion. The plan would require cryptocurrency service providers such as exchanges to collect, verify, and report user data directly to tax authorities.
These companies must also collect data from users located in other EU countries. The Dutch Tax Administration receives this information and exchanges it with other EU tax authorities under the DAC8 regulation.
From October 24th to November 21st, the Dutch Ministry of Finance will receive feedback from public authorities and crypto service providers. This feedback will play an important role in finalizing the legislation to ensure alignment with EU standards and Dutch tax objectives.
The ministry plans to submit a final version of the bill to the House of Representatives by mid-2025, with the aim of having regulations come into force in 2026.
Volkert Issinga, Director-General of the National Tax Administration, emphasized that the bill marks an important milestone in virtual currency taxation and will strengthen transparency and cooperation across EU member states.
Mr Idsinga said:
“In the future, EU member states will be able to cooperate more thanks to data exchange, and transactions with cryptocurrencies will be transparent to tax authorities. This will help fight tax avoidance and evasion, and European governments will No more missing out on tax revenue.”
Virtual currency taxation in Europe
The Dutch move comes amid ongoing efforts across the European Union to tighten crypto tax regulations in the region.
Over the past few weeks, several EU countries, such as Italy and Denmark, have introduced proposals for higher tax regimes on crypto holdings.
But market analysts warn that such strict regulations could lead to an exodus of talent and innovation from Europe. They also warn that these policies could deter residents from investing in the emerging cryptocurrency industry.
Notably, Tether CEO Paolo Ardoino commented that these tax policies could limit the freedoms of European citizens.
