The Netherlands is taking steps to regulate crypto ownership and taxation, with a public consultation process underway to gather feedback on proposed regulations. The goal of these regulations is to increase transparency around crypto holdings in order to combat tax evasion. Under the new plan, crypto service providers, including exchanges, will be required to collect, verify, and report user data directly to tax authorities.
In addition to collecting data on Dutch residents, these companies will also need to gather information on users residing in other EU nations. This data will be shared with other EU tax agencies under the DAC8 regulation. The Dutch Ministry of Finance is currently seeking feedback from the public and crypto service providers until November 21 to ensure that the final legislation aligns with EU standards and the country’s tax policy goals.
The Ministry aims to submit the final version of the bill to the House of Representatives by mid-2025, with the regulation expected to take effect in 2026. State Secretary for Taxation and Tax Authorities, Folkert Idsinga, emphasized the importance of the bill in enhancing transparency and cooperation across EU member states to combat tax avoidance and evasion.
This move by the Netherlands is part of a broader effort across the European Union to strengthen crypto tax regulation. Countries like Italy and Denmark have also introduced proposals for high-tax regimes on crypto holdings in recent weeks. While these regulations aim to increase tax revenues, market analysts warn that they could potentially stifle innovation and drive talent away from Europe’s crypto industry.
Tether CEO Paolo Ardoino has expressed concerns that these stringent tax policies may limit freedoms for European citizens. As the landscape of crypto taxation continues to evolve in Europe, it will be important for policymakers to strike a balance between regulation and fostering a thriving crypto ecosystem.
