TechFlow news, October 25 — According to Cointelegraph, on October 24, 2024, the Dutch Ministry of Finance announced it is seeking public feedback on a new bill that would require service providers such as cryptocurrency exchanges to collect and report user data to tax authorities. The move aims to align with EU regulations and enhance transparency around cryptocurrency ownership.
The Dutch Ministry of Finance stated that the new rules will not alter existing obligations for cryptocurrency holders, who must still declare their holdings to tax authorities. The bill will allow Dutch tax authorities to share cryptocurrency data of domestic residents with other EU countries, in compliance with the EU's Crypto-Asset Reporting Framework (CARF), also known as DAC8, adopted last year.
State Secretary for Tax Affairs and Tax Administration Folkert Idsinga emphasized that this step is crucial for taxing cryptocurrencies effectively, helping prevent tax avoidance and evasion, and ensuring European governments do not lose tax revenue.
