The Dutch government intends to align its data collection standards for crypto service providers with the rest of the EU, claiming this will “create more transparency.”
The Dutch government is seeking public feedback on proposed legislation requiring cryptocurrency service providers, including exchanges, to collect and share user data with the local tax agency, which aligns with European Union regulations.
“The aim of the bill is to create more transparency about the ownership of cryptocurrencies, which can prevent tax avoidance and evasion,” stated the Netherlands Ministry of Finance in an October 24 press release.
The ministry added that the new rules would not directly affect crypto owners, as they are already required to report their holdings to the tax authority, the Belastingdienst.
Under the proposed bill, the Dutch tax authority would also share the collected data on residents of other EU countries with the tax agencies in those countries under the EU’s DAC8 crypto tax reporting standards established last year.
To minimize administrative workload, the ministry noted that crypto service providers will only need to report to the tax authority in the EU member state where they are registered.
Dutch crypto holders are subject to tax on their assets like other investments, but the Finance Ministry pointed out that EU tax agencies currently lack “sufficient insight” into the crypto sector, resulting in an unbalanced financial landscape.
“With this bill, we are taking an important step in the taxation of cryptocurrencies,” said Folkert Idsinga, State Secretary for Tax Affairs and the tax administration.
He added that future data-sharing measures would make crypto “transparent to tax authorities,” helping to “prevent tax avoidance and evasion” and ensuring European governments do not lose out on tax revenue.
The Netherlands is among 47 countries that in November adopted the Crypto-Asset Reporting Framework (CARF) from the Organisation for Economic Cooperation and Development (OECD).
Additionally, the bill outlines that crypto service providers’ data would be shared with non-EU countries that signed onto CARF, including the United States, United Kingdom, Canada, Australia, Singapore, and others.
The Dutch government will accept opinions, suggestions, and comments on the proposed legislation until November 21, with plans to present the bill to the House of Representatives in the second quarter of 2025.
