European Union Implements Fresh Crypto Regulations : Demanding Data Sharing from Crypto Companies.
So, the European Union, in their never-ending quest to know what’s up with your digital piggy bank, just passed a law that says crypto companies have to share your financial secrets with the tax authorities. 😱
Here are the deets in simple terms:
What’s In the Mix? This law covers a bunch of crypto stuff: stablecoins (the ones that don’t swing like a monkey in a tree), NFTs (those fancy digital collectibles), e-money tokens (you know, digital bucks), and any crypto-assets that pop up in a “decentralized manner” (when nobody’s really in charge).
The Big Share: So, all the crypto service providers have to do a mandatory data swap with the tax folks. They’re sharing what you’ve got in your crypto wallet with them. 🤫
The Official Word: They call this law the Eighth Directive on Administrative Cooperation (DAC8). Sounds fancy, right? It was proposed way back in December 2022.
Coming Soon: It’s not on the streets yet, but it’s gonna be soon! Once it’s published in the Official Journal of the EU, it’s game on. That’s usually around 20 days after they drop the paperwork.
Crazy Coincidence: Just when this news came out, Johanna Store, the spokesperson for the European Council, said it’s coming in the next two weeks. But we don’t have the exact date as of now. Let’s stay tuned for that surprise party!
EU Double Trouble: They say this law buddies up with another one called MiCA (Markets in Crypto-Assets). MiCA wants crypto companies to get licenses if they wanna dance in the EU and tells stablecoin creators to stash some backup cash.
Wait, There’s More: The European Securities and Markets Authority (ESMA) is also in on the game. They dropped a “second consultation paper” about MiCA in October 2023.
So, folks, hold on to your crypto wallets, because the EU is turning into the ultimate crypto detective! 🕵️♂️ Time to keep an eye on your digital assets and stay out of trouble.
That’s a wrap for today’s crypto comedy hour with Durgesh. Stay safe out there in the crypto jungle, and remember.