RLP Blog

The European Parliament has officially endorsed a resolution outlining DAC8 transparency rules for Crypto-Asset Service Providers

Under these rules, entities offering such services are mandated to collect, verify, and report customer data and transactions.

These measures aim to tackle the inherent challenges posed by the decentralized nature of crypto-assets, which have made tax regulation and compliance more intricate. Notably, this proposal aligns harmoniously with international reporting standards established by the OECD.

Key provisions of the new regulations stipulate that Crypto-Asset Service Providers must:

1. Implement robust due diligence procedures for collecting customer data and tracking transactions.

2. Collaborate by sharing customer information, inclusive of transaction details, with relevant tax authorities through automatic information exchange.

3. This data will be instrumental in enforcing tax regulations and combating money laundering.

Crucially, the DAC8 provisions will be synchronized with the MiCA regulation, effectively streamlining administrative processes and mitigating burdens for businesses operating in this sector. Moreover, the Common Reporting Standard (CRS) for tax information exchange will see updates, extending its scope and enhancing reporting requirements.

Entities subject to CRS obligations will need to diligently review and update their operational procedures to align with these changes. Ultimately, these developments signify a significant stride toward fostering transparency and regulatory oversight in the dynamic crypto-asset market.

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