The Netherlands launched a consultation on a bill requiring crypto services to share their users' data with tax authorities.

The European Union (EU) member state is making this move in compliance with a directive known as DAC8, mandating that crypto service providers in the EU collect and report user data to tax authorities. This data will be exchanged with other EU member states.

The goal of the bill is to enhance transparency to prevent tax avoidance and evasion, as stated by Folkert Idsinga, State Secretary for Taxation and Tax Authorities. He emphasized, "In the future, EU member states will be able to cooperate better thanks to the exchange of data and transactions with cryptos, which will become transparent to tax authorities."

The country aims to gather stakeholder opinions before presenting the bill to the House of Representatives in the first half of 2025. The public consultation will close on November 21. Countries like the U.K. and New Zealand are also implementing measures that align with the OECD's tax reporting standards aimed at promoting transparency between nations.