The EU Commission enforces transparency: Poland and the Netherlands among 12 countries requiring compliance with new cryptographic regulations

The European Commission has intensified efforts to implement the EU regulatory framework for crypto assets. In the latest series of infringement proceedings, action has been initiated against twelve member states that have failed to comply with or improperly applied EU transparency and tax reporting requirements. Poland and the Netherlands are among the countries that received formal notices requiring them to align their national legislation with the new standards.

New Transparency and Reporting Requirements for Crypto Assets

Formal notices sent to 12 member states—including Poland, the Netherlands, Belgium, Bulgaria, the Czech Republic, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, and Portugal—pertain to insufficient implementation of EU regulations. The European Commission points out gaps in tax transparency and information exchange regarding transactions involving crypto assets.

The issue is that many countries, including Poland and the Netherlands, have not fully adapted their tax systems to meet the new requirements. This particularly concerns reporting obligations for transactions conducted by service providers related to crypto assets.

EU Directive 2023/2226 as a Turning Point in Crypto Market Regulation

The European Commission’s actions are based on EU Directive 2023/2226, which amends the longstanding EU administrative cooperation framework in taxation. This directive expands existing reporting and information exchange obligations to the crypto assets industry.

The change is significant because previous tax regulations did not fully cover the activities of crypto service providers. The new rules aim to increase transparency in crypto asset transactions and limit opportunities for tax avoidance in this sector.

Implications for Poland and the Netherlands

Poland and the Netherlands, like other countries subject to infringement procedures, now need to adapt their local laws to comply with the new EU requirements. This process involves amending national tax legislation and implementing information exchange systems with other member states.

For both countries, this means:

• Updating definitions and classifications of crypto assets in tax law
• Introducing mandatory transaction reporting to tax authorities
• Establishing mechanisms for tax information exchange with other EU countries

The Importance of Transparency for the Crypto Market

Enhanced enforcement by the European Commission signals a firm stance on crypto asset regulation. The Commission aims for the entire EU crypto market to operate under oversight and transparency, regardless of whether it’s Poland, the Netherlands, or other member states.

The regulations primarily seek to ensure that taxpayers cannot hide their profits from crypto transactions. The implementation of these changes by Poland and the Netherlands will directly impact how investors are treated in these countries.

There is strong indication that the European Commission’s actions are part of a broader strategy to fully integrate the crypto asset market with the traditional EU tax system. Poland and the Netherlands, like other countries under infringement procedures, must now demonstrate commitment to swiftly implementing the new regulations.