EU encryption tax proposal requires national encryption service providers to report EU user transactions

A new European Commission proposal will require crypto asset service providers of all sizes and geographic locations to report transactions by EU clients to tax authorities, The Block reports. The scope of the legislation covers “decentralized issued” crypto assets, including stablecoins and non-fungible tokens. The committee also recommends monitoring the cross-border movements of high-net-worth individuals. The proposal is now heading to the desks of policymakers in the European Parliament. Unanimous approval by country representatives on the European Council is also required before the new rules can come into effect. The European Commission wants to implement the proposed requirements from 2026.