The Dutch Ministry of Finance has opened a consultation process on its proposed regulatory framework to tighten crypto tax rules and improve transparency in digital asset ownership.
It announced that feedback from crypto service providers, citizens, and other relevant stakeholders would be welcomed until November 21, 2024.
The proposed legislation, set to take effect on January 1, 2026, would require crypto service providers to collect, verify, and submit user data to the Dutch Tax Administration.
This legislation aligns with the EU’s DAC8 directive, which mandates that crypto providers report user data to tax authorities within their registered country. This framework is directed at simplifying administrative processes and allows service providers to report only once within the EU member state where they are based. Providers could be subject to multiple data requests from various EU countries without this directive, significantly increasing the administrative burden on crypto service providers.
Notably, the Netherlands adopted the OECD’s Crypto-Asset Reporting Framework (CARF) in November 2023. Thus, the proposed legislation will ensure that data collected under CARF is also shared with non-EU jurisdictions that comply with the framework.
In the Ministry’s statement, Secretary of State for Taxation and the Tax Administration, Folkert Idsinga, emphasized that the bill is “an important step in the taxation of cryptocurrencies,” supporting transparent data-sharing across the EU and aiding in retaining crypto tax revenue.
Feedback from this public consultation will help refine the bill, which the ministry plans to submit to the House of Representatives by mid-2025.
This proposal follows a recent disclosure that the Dutch Ministry of Finance declined requests from the Netherlands Authority for the Financial Markets (AFM) for additional funding to expand its crypto oversight, as new EU Markets in Crypto-Assets (MiCA) regulations are set to roll out at the end of the year. The ministry’s “minimum scenario” approach advocates limited regulatory expansion, deeming significant government funding politically unfeasible.
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