The Dutch government is seeking public input on a set of proposed laws that would require cryptocurrency service providers, such as exchanges, to collect and share user data with the local tax authority. This move is in line with European Union regulations.
According to a press release from the Netherlands Ministry of Finance on October 24th, the purpose of the bill is to increase transparency regarding the ownership of cryptocurrencies, which can help prevent tax avoidance and evasion. The ministry also emphasized that the proposed rules would not change anything for crypto owners, as they are already required to report their holdings to the country’s tax authority, the Belastingdienst.
Under the new bill, the tax agency would share the data collected by service providers about residents of other EU countries with the tax authorities of those nations. This requirement is part of the EU-wide crypto tax reporting rules, known as DAC8, which were adopted last year. The ministry explained that this measure reduces the administrative burden on crypto service providers, as they only need to report in the EU member state where they are registered.
Dutch crypto owners are already subject to taxation on their holdings, similar to any other investment. However, the Finance Ministry noted that EU tax authorities currently lack sufficient insight into cryptocurrencies, creating an uneven playing field in the financial sector.
Folkert Idsinga, the state secretary for tax affairs and the tax administration, stated that this bill represents an important step in the taxation of cryptocurrencies. He added that the exchange of data will make the crypto market more transparent to tax authorities, preventing tax avoidance and evasion and ensuring that European governments do not miss out on tax revenues.
The Netherlands was one of the 47 countries that implemented the Crypto-Asset Reporting Framework (CARF) from the Organisation for Economic Cooperation and Development (OECD) in November. The proposed legislation also states that the data collected by crypto service providers would be shared with non-EU nations that have signed on to the CARF, including the United States, the United Kingdom, Canada, Australia, Singapore, and others.
Opinions and comments on the proposed rules can be submitted until November 21st, and the government aims to present the bill to the country’s House of Representatives in the second quarter of 2025.