European Commission Targets Crypto Tax Gaps, Pressures 13 States Over MiCA Compliance

Key Takeaways:

• The European Commission is preparing legal action aiming to 12 EU members for not complying with tax reporting regulations for crypto assets.
• Hungary will face separate legal action due to conflicting domestic crypto regulations with the EU’s MiCA framework.
• The 12 member states can respond within two months to EC before new enforcement measures are applied.

The Commission increased the intensity of crypto, and it is reflective of the Commission not letting any gaps slip through its tax reporting or regulation. This made the crypto assets squarely subject to legal scrutiny because with its most recent January infringement bundle, Brussels targeted a number of Member States.

The Commission confirmed it has sent formal letters of notice to 12 countries for failing to fully transpose Directive (EU) 2023/2226 into national law. The list includes Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal.

The directive updates the EU’s long-standing framework on administrative cooperation in taxation. Its focus is crypto-assets, requiring tax authorities to gain access to standardized information on crypto transactions and holdings across borders.

Under the procedure, these countries now have two months to respond, complete transposition, and formally notify the Commission. If they fail, the case can move to a reasoned opinion, a step that often precedes referral to the EU Court of Justice.

Read More: Germany’s DZ Bank Secures MiCAR Approval, Bringing Regulated Crypto Trading to Millions

The name given to it is DAC8, which in short adds reporting obligations to the crypto-asset service providers. The platforms must now collect their user and transaction information and submit it to the tax authorities, in the same manner in which the existing disclosure requirements apply to regular bank accounts.

According to the Commission, this is one of the things it can do in time to reduce tax evasion and avoidance of digital assets. The crypto markets have scaled quicker than the majority of the national taxes, and therefore Brussels is close to closing that disparity by driving one reporting framework across the entire block.

Read More: Poland Becomes EU’s Lone Holdout as President Vetoes MiCA Crypto Bill

Alongside tax enforcement, the Commission also opened a separate infringement case against Hungary for failing to comply with the Markets in Crypto-assets Regulation (MiCA).

The action follows Hungary’s adoption of Act LXVII of 2025, which amended its national crypto law and introduced a new authorization regime for so-called “exchange validation services.” According to the Commission, this regime includes criminal liability requirements that do not exist under MiCA.

The result has been market disruption. Other crypto-asset service providers have been reported to halt or withdraw services because it appears that the legal grey waters and compliance risks are excessive. The Commission indicates that although Hungary is trying to strengthen AML and counter-terrorist finance controls, national regulations remain powerless as to override EU regulations that are directly effective.

Hungary has two months to respond. Otherwise, unless it is turned around, the case may continue to rise higher.

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