In a significant development, the European Union (EU) has received unanimous support from its member states for new rules that allow tax authorities to share information about individuals’ cryptocurrency holdings. The bloc’s finance ministers are expected to formally agree on the law next week, according to a senior official. The European Commission proposed the eighth amendment to the Directive on Administrative Cooperation (DAC8) last year, with the aim of curbing tax evasion using cryptocurrencies. The amendment broadens an existing law that prevents taxpayers from concealing taxable assets in overseas bank accounts. The proposed changes apply to holdings of cryptocurrency and certain non-fungible tokens (NFTs). DAC8 Unanimously Supported by EU Ambassadors On Wednesday, Benjamin Angel, a commission official responsible for the proposed law, tweeted that EU ambassadors had unanimously supported DAC8. He also noted that the move paved the way for the law’s adoption by the ECOFIN during the finance ministers’ meeting scheduled for May 16. The proposal’s progress follows an earlier move by the Organization for Economic Cooperation and Development (OECD), aimed at combating tax evasion using digital assets. Under the Commission’s plan, companies with clients in the EU would have to register within the bloc to report digital assets to tax authorities. Mixed Opinions from Member States Despite the positive reaction from EU ambassadors, some countries are yet to formally approve the proposed law due to procedural delays. An anonymous EU official told CoinDesk that discussions around the bill have been held largely behind closed doors. The Council of the European Union, comprising the bloc’s 27 member countries, could have vetoed the proposals. However, there has been no indication of any significant opposition. Implications for the Crypto Market If the EU adopts the law next week, it could have far-reaching implications for the crypto market. The law’s provisions would enable EU tax authorities to share information about cryptocurrency holdings across borders, making it difficult for individuals to evade tax obligations. Conclusion The EU’s move to allow tax authorities to share information about cryptocurrency holdings is an essential step towards curbing tax evasion. If formally adopted, the law would ensure that individuals and companies could no longer hide their digital assets from tax authorities. The proposed law’s approval next week would mark a significant turning point in the regulation of cryptocurrencies and NFTs.