The Netherlands has launched a public consultation process to gather views on proposed regulations for crypto ownership and taxation, according to an October 24 statement.
Authorities explain that the new proposal focuses on creating transparency around crypto ownership to combat tax evasion. Under this plan, crypto service providers such as exchanges would be required to collect, verify and report user data directly to tax authorities.
These companies must also collect data about users living in other EU countries. The Dutch tax authorities would receive and exchange this information with other EU tax authorities under the DAC8 regulation.
Between October 24 and November 21, the Dutch Ministry of Finance will receive feedback from the public and crypto service providers. This feedback will play a crucial role in finalizing the legislation to ensure it is aligned with EU standards and Dutch tax policy objectives.
The ministry plans to present the final version of the bill to the House of Representatives in mid-2025, with the aim being that the scheme will enter into force in 2026.
State Secretary for Taxes and Tax Services Folkert Idsinga emphasized that the bill marks an important milestone in the field of crypto tax, increasing transparency and cooperation between EU member states.
Idsinga stated:
“In the future, the exchange of data will allow EU member states to cooperate better and transactions involving 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 tax in Europe
The Netherlands’ move comes amid an ongoing effort across the European Union to improve crypto tax regulation in the region.
In recent weeks, several EU countries, such as Italy and Denmark, have introduced proposals for high tax regimes on crypto holdings.
However, market analysts warn that such strict regulations could drive talent and innovation out of Europe. They warn that these policies could also deter residents from investing in the emerging crypto industry.
In particular, Tether CEO Paolo Ardoino noted that these tax policies could limit the freedoms of European citizens.