This initiative forms part of the country’s aim to align its tax laws with European Union standards.

Under the proposed law, crypto service providers, including exchanges, will be obliged to collect, verify and share user data with the Dutch Tax Administration, according to the Dutch Ministry of Finance’s announcement dated October 24.

This obligation is scheduled to come into force on January 1, 2026 and aims to prevent tax evasion across the EU and increase transparency regarding digital asset ownership. The Ministry of Finance invited crypto service providers and the public to submit their opinions by November 21.

Under the proposed rules, crypto service providers will have to submit data of their users in EU member states, and the Dutch Tax Administration will share this data with other EU tax authorities. This step was designed to comply with the DAC8 crypto tax reporting directive that EU member states adopted last year.

Introduced by the EU on October 17, 2023, DAC8 requires all crypto service providers in the EU to report user data to the tax authority of the country in which they are registered. This framework eases the administrative burden by ensuring providers only report once in the EU country in which they are registered.

Without this directive, providers may face multiple data requests from each EU country, increasing the administrative burden for crypto service providers.

Additionally, the Netherlands adopted the Organization for Economic Co-operation and Development (OECD) Crypto Asset Reporting Framework in November 2023. This framework automates information sharing between tax authorities of all participating countries.

The proposed law in the Netherlands will enable the data collected in this framework to be shared with non-EU countries adhering to CARF. State Secretary for Taxation and Tax Administration Folkert Idsinga stated that the law represents “an important step in the taxation of cryptocurrencies.”

Idsinga emphasized that advanced data sharing mechanisms will prevent tax evasion and prevent EU governments from losing taxes on crypto assets.

Regulations to be made in line with public comments will ensure that the law meets EU standards and Dutch tax policy objectives. The Ministry of Finance aims to submit this bill to the House of Representatives by mid-2025.

The Netherlands is following Denmark’s lead in complying with EU crypto tax standards. On October 23, Denmark introduced a bill to tax unrealized crypto gains in line with DAC8 and CARF standards.

In this process, the European Union has accelerated its efforts to create a unified regulatory framework for the crypto sector in member countries. As a key part of this effort, the EU has made the adoption of Crypto-Asset Markets (MiCA) law a priority.

Member states are also rapidly introducing national laws compatible with MiCA. For example, Irish regulators are urgently planning to introduce legislation to pre-regulate MiCA practices. Similarly, Spain is making preparations for early implementation.

MiCA will come into force on December 30, 2024.