European Union: Introduced proposal for new tax transparency rules for cryptoasset transactions

On 8 December 2022, the European Commission issued a Proposal for a Directive amending the existing Directive 2011/16/EU on administrative cooperation in the field of taxation. The Proposal includes new tax transparency rules for entities facilitating transactions in crypto-assets for customers resident in the European Union (EU), complementing the Markets in Crypto-Assets (MiCA) Regulation and the EU's anti-money-laundering rules. In particular, the Directive would require all crypto-asset service providers, regardless of size or location, to report transactions of clients residing in the EU. The financial institutions would be required to report on e-money and central bank digital currencies. Furthermore, the Directive would extend the scope of the automatic exchange of information to advance cross-border rulings in cases involving individuals holding over EUR 1 million in investable wealth or assets under management. The Proposal for a Directive falls under the special legislative procedures and goes to the Council for adoption and to the European Parliament for consultation.