EU Warns 12 States on Crypto Tax Reporting as MiCA Rules Tighten
The European Commission has officially warned 12 EU countries for not fully putting new crypto tax transparency rules into practice.
Quick overview
- The European Commission has warned 12 EU countries for failing to implement new crypto tax transparency rules.
- These countries have two months to address the issues or face potential legal action from the EU.
- The Commission aims to enhance oversight of digital assets to combat tax evasion and fraud.
- Hungary is also under scrutiny for its compliance with the EU's MiCA regulation, which affects crypto operations.
The European Commission has officially warned 12 EU countries for not fully putting new crypto tax transparency rules into practice. This move increases pressure on governments to improve oversight of digital assets. The warnings are part of the Commission’s January infringement package, which is used when EU law is not followed correctly.
The countries named are Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal. They have two months to fix the issues or risk further legal action, which could end up at the Court of Justice of the European Union.
This step highlights Brussels’ wider push to make sure crypto-related income is taxed as digital assets become a bigger part of Europe’s financial system.
Why Crypto Tax Transparency Is a Priority
The main issue is an EU directive that expands tax reporting rules for crypto-asset service providers, such as exchanges and custodial wallet companies. These businesses must collect and share user and transaction data with national tax authorities.
The Commission says crypto transactions have unique risks because they are:
- Designed to cross borders and often involve several countries
- Faster than regular payments, which makes tracking harder
- Less transparent, especially when middlemen are not closely regulated
By expanding reporting rules, EU officials hope to help tax authorities work together and reduce tax evasion, fraud, and aggressive avoidance schemes involving digital assets. Even though the directive was agreed at the EU level, enforcement relies on national laws and systems, where progress has varied.
The Commission also said it has closed 72 infringement cases where countries fixed their compliance issues, showing that enforcement can move quickly when governments respond.
Hungary Flagged Over MiCA Compliance Risks
Besides tax reporting, the Commission also questioned whether Hungary is following MiCA, the EU’s main crypto regulation from 2023. A separate notice was sent about changes to national laws affecting exchange validation services, which reportedly caused some companies to pause their operations.
Hungary says these steps improve anti-money laundering and counter-terrorism financing (AML/CFT) controls. However, Brussels warned that national rules must still fit with MiCA’s single-market framework.
Under MiCA, most crypto companies that were operating before December 2024 must fully comply or stop their services by July 1, 2025. However, some countries have made this transition period shorter, which has raised concerns about inconsistent rules.
Overall, these actions send a clear message: as MiCA and crypto tax rules take effect, any delays or differences will be closely watched across the EU.
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