Cryptocurrency companies in Europe must declare user assets

The European Union seeks to extend the obligation of cryptocurrency exchanges to declare the assets of their clients

The European Council, in its search to reduce the administrative burdens generated by cryptocurrencies, will extend to exchanges the obligation to declare user assets, such as bitcoin, stablecoins and NFTs.

EU finance ministers are currently discussing a bill that will force cryptocurrency companies to declare client assets. “The document that serves as the basis, dated May 5, is based on the provisions of the Crypto-asset Market Regulation (MiCA law), recently approved by the European Parliament.”

With the regulation, officials intend to decrease administrative burdens for “cryptocurrency providers.” Under the proposal, intermediaries will be required to report user funds to EU tax offices.

In short, “regulated and authorized companies will be subject to this compliance as stipulated in the MiCA Law, as well as companies that are not under a regulatory regime. This, since they are recognized as service providers of declaring crypto assets.”

The assets that must be declared are all those issued in a decentralized means:. That is, bitcoin, stablecoins and non-fungible tokens.

M.Pino

Source: hispanopost

(Reference image source: Traxer, Unsplash)

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