The European Union plans to require Bitcoin and cryptocurrency companies to provide tax authorities with information about their customers' assets.
The bill, which follows the OECD model, is expected to be approved by finance ministers next week and will enable tax authorities to exchange data within the 27-nation union.
Commission officials said the bill was unanimously supported at a meeting Wednesday, but some sources said some finance ministers still need formal approval from parliaments.
The May 5 bill is similar to the proposals the European Commission made in December 2022 as part of an effort to prevent EU citizens from storing crypto abroad to evade tax.
The Commission will have to create a register of crypto-asset holdings by December 2025, one year before the previous deadline, and the rules will go into effect on January 1, 2026.
Known as the eighth directive on administrative cooperation (DAC8), the law also covers platforms for trading non-fungible tokens (NFTs) that can be used for payment or investment, and non-union providers with customers in the EU. Foreign crypto firms will be able to report to foreign authorities that meet EU standards.
*Not investment advice.