The Netherlands seeks public consultation on cryptocurrency tax regulation laws to align with the European Union

ChainCatcher news, the Dutch government has sought public opinion on a proposed law that would require cryptocurrency service providers (such as exchanges) to collect and share user data with local tax authorities to comply with EU regulations.

The Dutch Ministry of Finance stated in a press release on October 24: "The purpose of this bill is to increase the transparency of cryptocurrency ownership to prevent tax evasion and avoidance."

Under the new law, tax authorities will share data collected by service providers regarding residents of these countries with tax authorities in other EU countries, as stipulated by the EU-wide cryptocurrency tax reporting rules (i.e., DAC8) passed last year. The ministry explained that these rules reduce the administrative burden on cryptocurrency service providers because "they only need to report in the EU member state where they are registered."