European Union Officially Endorses Crypto Tax Reporting Rule DAC8; US Regulators Follow Suit
Summary:
The Council of the European Union officially endorsed the eighth version of the Directive on Administrative Cooperation (DAC8), which deals with cryptocurrency tax reporting. The revised directive, which adheres to the Crypto-Asset Reporting Framework (CARF) and the Markets in Crypto-Assets (MiCA) law, equips tax collectors with the authority to scrutinize all cryptocurrency transactions within the EU. The directive received substantial backing from the EU Parliament and is set to take effect after its publication in the EU's Official Journal. Meanwhile, US regulators are also propelling to expedite similar cryptocurrency tax gathering measures.
On October 17, the Council of the European Union officially endorsed the eighth version of the Directive on Administrative Cooperation (DAC8), a law focusing on cryptocurrency tax reports. This regulation will become legal once spotlighted in the EU's Official Journal. The DAC received approval in May 2023 after the implementation of the Markets in Crypto-Assets (MiCA) act. The number "8" in the updated scheme's title marks it as the eighth edition, each past directive targeting unique facets of financial governance. The goal of DAC8 is to extend authority to tax collectors, enabling them to scrutinize and grade all cryptocurrency motions made by persons or organizations within any other EU member nation. Currently, DAC8 adheres to the stipulations outlined in the Crypto-Asset Reporting Framework (CARF) and MiCA, thus incorporating all cryptocurrency asset dealings across the European Union. In September, DAC8 was backed substantially, passing the EU Parliament adoption vote with 535 members in favor and a mere 57 opposing. Concurrently, US regulators are also avidly advocating for the prompt initiation of cryptocurrency tax gathering measures. On October 11, seven US Senate representatives urged the Treasury Department and Internal Revenue Service (IRS) to expedite a law introducing specific tax report conditions for crypto brokers. These regulators voiced displeasure over a two-year holdup in executing cryptocurrency tax report obligations, poised to commence in 2026 for 2025 operations.
Published At
10/18/2023 8:50:17 AM
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