The European Union will force cryptocurrency companies to report the holdings of all European users to tax authorities.
The news, which was Posted by CoinDesk On Thursday, December 8, he said that the eighth proposal Directive on Administrative Cooperation This could have far-reaching legal implications, as by forcing companies to report users' holdings, it would also force any company not registered in the European Union to register with the tax authorities of a member country.
Paolo Gentiloni, EU Commissioner for Taxation, believes that The anonymity of cryptocurrencies is not acceptable, since “users avoid the radar of national tax authorities.”
This measure will also give a boost to Markets in Cryptoassets Regulation (MiCA), which will allow foreign companies to attract customers within the European Union through a procedure called “reverse request".
The new regulation will require Any company with EU customers registering and reporting holdings within the bloc, which poses a number of challenges and problems.
A regulation that is difficult to apply
La application of a standard of this type is very difficult and has not been made clear, since in the cryptocurrency sector there are companies that reside in several jurisdictions and there are even some companies that operate in a completely decentralized manner, so they are not registered under any jurisdiction.
On the other hand, this information would create an effect Honey Pot, as centralized exchanges and cryptocurrency companies They will collect a large amount of sensitive identifying information about their users (bank accounts, official documents, etc.), something that will be very attractive to digital criminals, who could obtain a large amount of data to link to their illegal operations.
The crypto community has been quick to express its concern, as these types of proposals only force companies to collect more data and information, which facilitates possible exposure.
In this sense, the European Cryptographic Initiative has issued a statement in which it expresses that “it is concerned that applies to a much broader range of obliged entities and persons” than MiCA, which “would dilute the initial concept of MiCA and potentially weaken its effect.”
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