The Latvian Cabinet of Ministers approved the bill No. 24-TA-3148, aimed at bringing national tax norms in accordance with the requirements of Crypto Asset Reporting Framework (CARF) and the DAC8 DAC8 Directive. The document introduces the rules for automatic tax information exchange between the fiscal authorities of the European Union countries, as well as the mandatory tax reporting for service providers related to digital assets, including exchanges and castedial services. Violation of the requirements threatens with fines up to 14,000 euros (about $ 16,000).
The bill clarifies the concepts of accountable crypto assets and exchange operations, and also eliminates the gaps that potentially allowed the suppliers of cryptocurrency services to bypass table legislation. For example, do not declare income from operations with digital assets, such as cryptocurrency trading or transfers between wallets, referring to the lack of specific requirements in the law.
The new regulation rules will enter into force on January 1, 2026, which corresponds to the pan -European date of entry into force of the EU DAC8 Directive – December 31, 2025. Supervision of compliance with the rules is entrusted to the Bank of Latvia, which licenses the suppliers of crypto services, and the State Tax Service (SRS), which is responsible for tax reporting.
The regulator’s statement says that the new rules are aimed at increasing the transparency of the country’s cryptocurrency market and strengthening the positions of Latvia as a center for blockchain-innovations in the eurozone. After approval by the Cabinet of Ministers, the bill No. 24-TA-3148 was transferred to the approval of the Sejm Latvia.
On the eve of the publication of Coinidol, it was reported that the Lithuanian provider of cryptocurrency services Trastra EU began bankruptcy and temporarily blocked user assets in cryptocurrency and fiat.
Source: Bits
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