Regulation
Netherlands seeks public feedback on crypto tax reporting rules
- Netherlands has invited public comments on a new draft bill on crypto tax reporting expected to align local rules with European Union regulations.
- The public can share opinions and comments up to Nov. 21, 2024.
- Adoption will see crypto service providers share user details starting January 1, 2026.
The Dutch government has asked for public input on a new draft regulation for crypto tax monitoring and reporting, with a focus on aligning local tax laws with broader crypto regulation within the European Union.
The Netherlands’ Ministry of Finance announced the public feedback program in a press release published on Oct. 24. The draft bill, if adopted into law, would mandate cryptocurrency exchanges and other digital asset service providers to submit customer data to the Dutch Tax Administration.
Per the announcement, the new law aims to create a more transparent environment in terms of crypto ownership to reign in potential tax avoidance or evasion.
As such, the public have Nov. 21 to submit their opinion, advice and comment. Thereafter, the government will look to bring the bill to the Dutch House of Representatives at the start of Q2, 2025. If adopted, the new law will take effect on January 1, 2026.
Aligning with EU regulations
The Netherlands’ proposed bill is part of the country’s effort to bring local crypto regulation in line with broader laws in the European Union. This effort is being implemented across the EU member states. In October 2023, the EU released the DAC8 directive, which provides that crypto exchanges adopt tax reporting measures in the countries they hold regulatory licenses.
Accordingly, the DAC8 eases the administrative burden on exchanges as reporting is only mandated in that one country and applies across the EU.
The Netherlands’ move sees it join Denmark, which this week outlined crypto tax standards for unrealized gains. The proposal also aligns with the DAC8 and is part of the broader effort to support EU’s Markets in Crypto-Assets (MiCA) regulation.
MiCA is a comprehensive regulatory framework that the European Parliament passed into law in June last year. The regulation provisions on stablecoins came into effect on June 30, 2024, while the full law takes effect as of December 30, 2024.
In response to recent actions by a U.S. prosecutor and the U.S. Securities and Exchange Commission (SEC) against several cryptocurrency firms, including CLS Global, the company has issued a statement addressing the situation. CLS Global has contacted U.S. authorities in order to establish a constructive and cooperative dialogue with the hope of resolving the cases, addressing any misunderstandings, and taking any appropriate remedial steps to mitigate risks in the future.
Strict Policy Against U.S. Market Engagement
According to the company, CLS Global has maintained a policy of seeking not to operate within the United States market or conducting business with U.S. citizens, entities, or users. This policy has been in place since the company’s establishment
Filipp Veselov, CEO of CLS Global, was quoted as saying, “Our company has always aimed to maintain a policy that prohibits engagement with U.S. clients, entities, or users. We take our compliance obligations very seriously and have worked to ensure our operations remain separate from U.S. markets and regulatory jurisdictions.” Veselov added, “However, we recognize that there may be areas where we can improve our processes, and we are open to constructive dialogue with regulatory authorities.”
Steps Towards Resolution and Compliance Enhancement
In response to the current situation, CLS Global has outlined several steps it is taking:
- Reaching Out to US Authorities: The company reports that it has initiated communication with the US authorities to address any concerns or misunderstandings. CLS Global believes that through open and transparent dialogue, progress can be made towards a resolution.
- Reviewing Client Agreements: CLS Global states that it is in the process of reviewing and enhancing its client agreements to ensure they clearly communicate the company’s policies regarding U.S. persons and entities.
- Assessing Exchange Partnerships: The company is reportedly evaluating its operations on various cryptocurrency exchanges, with a focus on those with robust Know Your Customer (KYC) protocols, to further mitigate potential risks.
CLS Global’s Forward-Looking Statements
CLS Global has affirmed its commitment to operating within the bounds of applicable laws in the jurisdictions where it conducts business. The company has assured stakeholders that it will strive to honor its obligations to clients and partners while working through this process.
“We are taking this situation very seriously and are committed to engaging in constructive discussions with regulatory authorities to address any concerns,” Veselov stated. “Our goal is to ensure full compliance and transparency in our operations, and we are open to considering any necessary adjustments to our practices.”
The company has also expressed appreciation for the patience and understanding of its clients, partners, and stakeholders as it works to address this situation. CLS Global has indicated that it will provide updates as appropriate and remains committed to maintaining open lines of communication throughout this process.
About CLS Global
CLS Global is a leading cryptocurrency market-making firm, specializing in providing bespoke liquidity solutions for crypto projects worldwide. Renowned for its innovative approach, robust compliance framework, and client-centric operations, CLS Global operates at the forefront of the digital asset industry.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
- Pennsylvania House of Representatives have passed “The Bitcoin Rights Bill”, with a bipartisan majority of 176 to 26.
- The bill seeks regulatory clarity to the digital assets industry, including on self-custody, payments and taxation.
Pennsylvania has passed “The Bitcoin Rights Bill”, a new legislation that seeks regulatory clarity to the crypto industry.
While the US continues to lag other countries and regions in terms of regulatory clarity for digital assets, the state of Pennsylvania has taken a huge step towards this with the passage of House Bill 2481.
Pennsylvania House passes major crypto bill
According to FOX Business, the new bill received bipartisan support in the Pennsylvania House of Representatives and passed on Wednesday, October 23, 2024, with 176 votes to 26. The bill outlines protections for Bitcoin and crypto holders, including the right to self-custody and use for payments. ‘Bitcoin Rights’ also provides guidelines on the taxation of Bitcoin transactions.
76 Democrats joined their Republican counterparts to pass the bill, FOX Business wrote.
The next stage will see the new bill come up for debate and voting at the Pennsylvania Senate, which is Republican-led. If it passes, the final stage will be forwarded to Gov. Josh Shapiro. These two steps commence after the November 2024 US election.
Crypto stands out as one of the topics candidates in the upcoming US election have sought votes on, including at the presidential level.
With Donald Trump taking a crypto-friendly stance, it’s been up to Kamala Harris to win the crypto holder’s vote. Despite crypto roundtables and positive policy plans, Harris isn’t connecting with the crypto vote.
That’s also despite her campaign receiving major donations from some wealthy crypto owners. The most recent is Ripple co-founder Chris Larsen’s $10 million XRP contribution. Larsen called for the Democrats to take a “new approach” to the issue of cryptocurrencies.
Meanwhile, with less than two weeks to go, forecasts put the majority of crypto holders down as Trump votes. JD Vance, Trump’s VP pick, is also pro-crypto.
Notably, Pennsylvania is a battleground state and one that could help decide the Trump vs. Harris race to the White House.
Pennsylvania has become the latest state to enact laws aimed at providing some regulatory clarity on digital assets with the new Bitcoin Rights Bill. State legislatures and governors are increasingly taking action to set guidelines for the US crypto industry.
This move comes amidst prevailing uncertainty at the federal level over crypto regulation and the appropriate federal agencies responsible for enforcing fundamental investment rules in the still-developing $2 trillion digital asset market.
Pennsylvania Leads the Way with Bipartisan Bitcoin Rights Bill
The Pennsylvania House of Representatives has passed House Bill 2481, also known as the Bitcoin Rights bill. It establishes protections for resident rights to self-custody digital assets, allows the use of Bitcoin payments, and clarifies the taxing of Bitcoin transactions.
The bill saw considerable bipartisan support, with a convincing majority of 176 to 26 votes. Voting on the bill included 76 Democrats and unanimous support from the 100 Republican members.
The bill, which now heads to the Republican-led Pennsylvania Senate after the upcoming election, would be sent to Governor Josh Shapiro if approved.
https://twiter.com/Terrence_STR/status/1849500958952390847
The Bitcoin advocacy group Satoshi Action Fund drafted the bill to better educate lawmakers on the inner workings of the blockchain and Bitcoin. SAF has been instrumental in helping to craft and advance identical legislation in 20 other states. Four of them have already become law: Oklahoma, Louisiana, Montana, and Arkansas.
Its primary mission is to promote Bitcoin at the state level and push lawmakers toward setting clear regulations for crypto. It’s something the federal government has yet to do to normalize it as a transaction method.
Can Pennsylvania’s Crypto Bill Bridge the Political Divide?
While some state statutes relating to financial instruments for small investors are controversial, federal authority over means of payment often preempts state law. The federal government has yet to weigh which digital currencies, beyond Bitcoin and Ethereum, are securities. Also they need to check which fall within the disclosure requirements mandated by the SEC.
A separate federal agency, the Commodity Futures Trading Commission, regulating cryptocurrencies as commodities, applies a lighter touch than other regulatory bodies. Recently, its Chair Behnam urged Congress to act on crypto regulations and election betting laws, highlighting gaps in current frameworks at the SIFMA annual meeting.
This crypto regulation has become a highly political issue in this election year. Republicans—including their presidential nominee, former President Donald Trump—are pushing for tighter regulations. These should appeal to perhaps 50 million Americans who believe the Biden Administration’s strict regulatory approach has stifled innovation.
Exactly in this state, a pro-Bitcoin Political Action Committee called Bitcoin Voters PAC recently created a campaign ad for Trump.
Republican bill’s sponsor, and a long-time Bitcoin investor Rep. Mike Cabell, said:
“In such polarizing times, it is great to see both sides of the aisle come together to further innovation and prioritize security for Pennsylvanians who own and transact with cryptocurrency.”
Crypto ownership is hot in Pennsylvania, with 1.5 million residents holding some form of digital asset.
Lawmakers Bridge Divide, Embracing Bitcoin Rights
Pennsylvania stands out as the only state with a split legislature. That means no single party has full control, which requires bipartisan support for bills to advance.
The strong bipartisan reception of the Bitcoin Rights bill in the Democrat-led lower chamber, has backing from Republicans and, gives hope to Cabell for another successful outcome.
Cabell remarked:
“A bill focused on the right to financial freedom should have bipartisan support. The 26 votes against it came from members who either lack a solid understanding of blockchain technology or have concerns about Bitcoin’s environmental impact.”
Teuta
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan in Croatia, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don Tapscott and Bruce Dickinson, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law, enjoys punk rock, chablis, and has a passion for shoes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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