EU’s crypto tax reporting starts in January with threat of asset seizure

The EU has announced the implementation of a new crypto tax reporting directive starting January 2025. This directive expands tax data sharing in line with the MiCA framework, requiring exchanges across the bloc to comply by July 1, 2025. The aim is to enhance tax transparency among EU nations and prevent tax evasion, particularly in the previously opaque handling of crypto assets. The threat of asset seizure also looms, marking a new risk factor for investors. The impact of these regulations may result in adjustments to trading behaviors, as market participants factor in the new legal landscape. Observing how EU policies influence the crypto market will be crucial going forward.