• 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:

1. 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.
2. 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.
3. 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.

✓ Share:

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.