The European Commission has urged 12 European Union member states to implement the bloc’s new crypto tax transparency rules and separately flagged Hungary for non-compliance with the Markets in Crypto-Assets (MiCA) framework following an amendment to a domestic law.
Push to implement EU crypto tax rules
The Commission called on a dozen countries to put in place EU-wide crypto tax transparency measures designed to improve reporting and information exchange among national authorities. The rules require crypto-asset service providers to report customer holdings and transactions to tax authorities, aligning the EU with international standards aimed at curbing tax evasion in the digital asset sector.
The initiative is part of the EU’s broader effort to harmonize oversight of crypto markets, increase transparency for cross-border activity, and ensure consistent enforcement across member states.
Hungary singled out over MiCA compliance
The Commission also identified Hungary for failing to comply with MiCA after a recent amendment to a local law. MiCA establishes a unified regulatory framework for crypto-asset issuers and service providers across the EU, including authorization, conduct, and disclosure requirements. Its core provisions for the licensing of crypto-asset service providers are now in force across the bloc, with stablecoin-related rules already active.
Why it matters
Coordinated tax reporting and consistent licensing are foundational to the EU’s approach to digital assets. Effective implementation of the tax transparency rules will expand information sharing among authorities, while full adherence to MiCA is intended to provide legal certainty for firms operating across member states and enhance investor protection.
Next steps
Member states are expected to transpose the tax reporting measures into national law and ensure enforcement. Countries flagged for MiCA issues may need to amend domestic legislation to align with the EU framework. The Commission can escalate non-compliance cases through infringement procedures if gaps persist.