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The Dutch government has recently invited public feedback on new legislation requiring crypto service providers, such as exchanges, to collect and share user data with tax authorities. The initiative aligns with the European Unionās DAC8 directive, which mandates data-sharing to prevent tax evasion and increase financial transparency.
According to an October 24 press release from the Netherlands Ministry of Finance, the proposed bill seeks to give tax authorities a clearer view of cryptocurrency holdings and, ultimately, reduce opportunities for tax avoidance.
The ministry stated that for Dutch crypto owners, the bill wonāt mean any major shifts, as they are already obligated to report holdings to the national tax office, Belastingdienst. However, the bill will authorize Dutch tax authorities to share data on EU residents with other EU countries, a move to create a level playing field across Europe in terms of crypto taxation.
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Global Data-Sharing in Focus as Dutch Crypto Rules Tighten
This legislative effort is part of a larger initiative across Europe and beyond. The Netherlands was among 47 countries that embraced the Crypto-Asset Reporting Framework (CARF) from the Organisation for Economic Co-operation and Development (OECD) last November.
In line with CARF, the Dutch tax agency would also exchange crypto-related information with non-EU countries that are signatories, including the U.S., U.K., Canada, and Australia.
Folkert Idsinga, the Dutch state secretary for tax affairs, noted that the law would mark an āimportant stepā toward making cryptocurrency holdings visible to tax agencies, thereby aiding in tax compliance. Idsinga stated, āCrypto will become transparent to tax authorities, which will prevent tax avoidance and evasion, ensuring that governments donāt lose out on due revenues.ā
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Public Feedback Solicited
The Ministry of Finance encourages citizens and stakeholders to voice their thoughts on the proposed legislation by November 21, aiming for balanced regulations that meet both transparency and privacy needs. Following this consultation period, the government plans to present the bill to the House of Representatives by mid-2025.
With this legislation, the Netherlands is joining a growing list of countries pushing for comprehensive crypto tax reporting standards. The governments are aiming to bring digital assets under a regulatory framework that matches traditional financial markets.
