The European Commission plans to make crypto companies report user holdings to tax authorities, it said Thursday — but the European Union (EU) body says it’s still working on how to enforce the measures on wallet providers or exchanges based outside the bloc. From a report: As previously reported by CoinDesk, the proposed new tax rules, known as the eighth Directive on Administrative Cooperation or DAC8, seeks to halt billions of euros in evasion by taxpayers stashing crypto abroad. “Anonymity means that many crypto-asset users making significant profits fall under the radar of national tax authorities. This is not acceptable,” Paolo Gentiloni, EU Commissioner for tax, said in a statement.
When asked how the EU will enforce the measures on companies outside the bloc, Gentiloni told reporters, “we will work on that. What counts for us is that EU residents are targeted by these measures,” even if they use crypto providers from elsewhere, he said. Gentiloni’s measures would further the EU’s Markets in Crypto Assets Regulation (MiCA), which allows foreign companies to gain EU clients using a procedure called reverse solicitation.

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Source: Slashdot – EU To Make Crypto Companies Report Tax Details To Authorities