EU Commission Targets 12 States Over Crypto Tax Transparency Failures

The European Commission has launched infringement actions against 12 member states over non-compliance with crypto tax rules, also taking separate action against Hungary for MiCA violations.

Summary

On February 2, the European Commission initiated infringement proceedings against 12 EU member states for failing to implement Directive (EU) 2023/2226, which mandates tax transparency and reporting for crypto asset transactions. Member states have two months to address the non-compliance or face referral to the EU Court of Justice. In a separate move, Hungary faces infringement action over breach of the Markets in Crypto-Assets (MiCA) regulation. The actions reflect the EU’s continued enforcement drive to ensure uniform adoption of crypto asset tax and market oversight rules.

Terms & Concepts
  • Directive (EU) 2023/2226: An EU regulation introducing mandatory tax transparency and reporting requirements for cryptocurrency transactions to prevent tax evasion.
  • Infringement proceedings: A legal process by which the European Commission addresses member states’ failure to comply with EU laws.
  • Markets in Crypto-Assets (MiCA): EU regulatory framework establishing rules for crypto asset issuance, trading, and related services to ensure market integrity and consumer protection.