- The Netherlands has invited the public to comment on a new draft law requiring reporting of cryptocurrency-related taxes, intended to align local rules with European Union regulations.
- Members of the public can submit opinions and feedback until November 21, 2024.
- If adopted, crypto service providers will begin sharing user data on January 1, 2026.
The Dutch government has asked for public input on a proposed regulation to monitor and report cryptocurrency tax information, with the goal of bringing national tax rules into alignment with broader cryptocurrency regulation across the European Union.
The Dutch Ministry of Finance announced the public consultation program in a press release published on October 24. If the bill becomes law, it will require cryptocurrency exchanges and other digital asset service providers to submit customer data to the Dutch tax authorities.
According to the announcement, the new law aims to create greater transparency around crypto ownership to prevent potential tax avoidance or evasion.
The public has until November 21 to submit views, recommendations, and comments. The government intends to present the bill to the Dutch House of Representatives in early Q2 2025. If the law is approved, it will take effect on January 1, 2026.
Alignment with EU rules
The Netherlands’ proposal is part of a wider effort to align national cryptocurrency regulation with EU-level rules. This harmonization effort is being carried out across member states.
In October 2023 the EU adopted the DAC8 directive, which requires crypto exchanges to implement tax reporting measures in the country where they hold regulatory authorization. Under DAC8, the reporting burden on exchanges is reduced because reporting is required in only that one jurisdiction and is recognized across the EU.
The Netherlands’ move follows Denmark’s recent proposal outlining crypto tax standards for unrealized gains. The draft also complies with DAC8 and forms part of the broader drive to regulate crypto-asset markets under the EU’s Markets in Crypto-Assets (MiCA) framework. MiCA is a comprehensive regulatory package approved by the European Parliament in June of last year.
Provisions of the regulation covering stablecoins came into force on June 30, 2024, while the remainder of the MiCA regime becomes effective on December 30, 2024.