The European Commission has escalated its enforcement of cryptocurrency regulations, issuing formal warnings to 12 European Union member states for failing to fully implement new rules requiring the reporting of crypto-related tax information. The warnings, part of the Commission's January infringements package, were sent to Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal.
The action targets the incomplete transposition of the Directive on Administrative Cooperation (DAC8), which broadens tax transparency rules to include crypto-assets. The directive mandates that crypto-asset service providers—such as exchanges and custodial wallet providers—submit detailed user and transaction data to national tax authorities. This data is intended to help governments detect tax evasion, fraud, and avoidance associated with digital assets, addressing the challenge of cross-border and anonymous crypto transactions under traditional tax regimes.
The formal notices represent the first stage of an EU infringement procedure. The cited states now have two months to respond and correct the deficiencies. If they fail to comply, the Commission can escalate the matter by issuing a reasoned opinion, a more severe warning that could ultimately lead to a case being brought before the Court of Justice of the European Union. In the same package, the Commission announced the closure of 72 other cases where issues with member states had been resolved.
In a separate but related action within the same infringement package, the Commission raised concerns about Hungary's adherence to the EU's flagship crypto regulation, the Markets in Crypto-Assets (MiCA) framework. A formal notice was sent to Hungary regarding changes to its national law affecting "exchange validation services." The Commission stated these changes have caused some crypto-asset service providers to suspend or cease offering certain services in the country.
While Hungary argued the amendments aimed to strengthen anti-money laundering and counter-terrorism financing (AML/CFT) safeguards, the Commission warned that national rules must remain compatible with MiCA. Hungary also has a two-month deadline to address the concerns, or the matter will proceed to the next phase of infringement proceedings.
The enforcement push underscores the EU's determination to standardize oversight of digital assets. DAC8 rules are set to take effect starting January 2026, while most crypto companies operating before December 2024 must be fully MiCA-compliant by July 1, 2026. The Commission's actions indicate that, despite ample transition time, many countries have delayed or only partially implemented the necessary legislative and systemic changes, prompting this coordinated crackdown.
