While cryptocurrency regulations were only a matter of discussion in the past years, in 2023, political unions and government institutions from all over the world pressed the button.
Benjamin Angel, a member of the European Union Commission, announced the new regulation concerning crypto companies in his post on his Twitter account.
EU ambassadors have unanimously supported DAC8, paving the way for an adoption by the ECOFIN next week. Congratulations to the Swedish Presidency !
— Benjamin Angel (@benjaminangelEU) May 10, 2023
"EU members achieved the necessary unanimity and paved the way for the new regulation called DAC8. The draft law will be discussed next week."
The new regulation package, codenamed DAC8, demands that companies providing crypto custody services to individuals and institutions play an active role in tax evasion. According to the regulation, asset custodians will share both international and local customer information with institutions.
EU politicians, who brought the said regulation to the agenda for the first time in December 2022, made the following statement:
“Trading in the crypto sector takes place in a decentralized space. The high volatility of digital assets makes tax determinations extremely difficult.”
According to media sources, the DAC8 regulation will enter into force in 2024 at the earliest, if it is voted on. Confusion continues in the US, as the European Union takes clear steps on crypto regulation to avoid uncertainty.
