Summary:

• The European Commission is sending formal notices to 12 EU countries over incomplete crypto tax rule implementation.
• The move targets new EU transparency and information-sharing requirements for digital assets.
• Hungary was separately flagged over national measures that may conflict with the MiCA framework.
• Member states have two months to respond before further steps can follow.
• The action comes as MiCA compliance deadlines continue to roll out across the bloc.

Tax transparency is now firmly in focus, and the European Commission is making clear that delays will not slide. The Commission said it will send letters of formal notice to a group of member states that have not fully implemented the EU's tax reporting rules for digital assets. These rules are designed to improve how tax authorities share information and track crypto-related activity across borders, reducing blind spots in a market that naturally moves between jurisdictions.

The countries named are Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal. According to the Commission, these states are being called on "to fully implement the new tax transparency and information exchange rules on crypto-assets." A letter of formal notice is the first stage in the EU's infringement process. Member states now have two months to respond and align their national frameworks with the directive. If the Commission finds the replies unsatisfactory, it can move to the next stage and issue a reasoned opinion, which increases legal and political pressure.

At a practical level, these tax rules aim to bring crypto into the same reporting environment as more traditional financial assets. That means more structured data flows between countries, and fewer gaps where digital asset activity could fall outside tax oversight. For exchanges and service providers, it points to more reporting duties. For users, it signals that crypto transactions are becoming harder to keep outside the formal tax net.

Hungary's law change draws MiCA scrutiny

In the same notice, the Commission turned its attention to Hungary, but on a different front. This time, the issue is not tax reporting but alignment with the EU's Markets in Crypto-Assets (MiCA) framework. Hungarian authorities received a letter of formal notice over national measures introduced through an amendment to local law concerning "exchange validation services." According to the Commission, some crypto asset service providers have suspended or discontinued certain services following this change. The concern is not about Hungary trying to tighten oversight. In fact, the Commission acknowledged the intent behind the move but drew a line around EU consistency.

That sentence captures a key tension in Europe's crypto regulation phase. Member states still have room to shape national laws, especially around financial crime controls. But once MiCA is in place, those rules cannot undercut the single-market framework. If local measures effectively block or distort services that MiCA is meant to harmonize, Brussels is likely to step in.

Hungary, like the other countries, has two months to respond. The outcome will matter beyond its borders. How this is resolved could set a tone for how far national AML or consumer-protection measures can go without clashing with EU-wide crypto rules.

MiCA rolls forward as deadlines approach

All of this is happening while MiCA itself continues its phased rollout. Since EU lawmakers adopted the framework in 2023, different parts of the rulebook have been coming into force in stages. The goal has been to give token issuers and crypto asset service providers time to adjust systems, governance and disclosures. Under the framework, most crypto companies that were already operating before December 2024 have until July 1 at the latest to meet all MiCA requirements or stop offering services. Some member states have set even shorter timelines. That makes this period one of transition, where firms are juggling new licensing, reporting and operational standards.

The Commission's latest actions show that Brussels is not only watching private companies. It is also watching governments. If national laws or delays threaten the consistency of the system, the infringement process becomes a tool to pull things back into line. For the crypto industry, the message is straightforward. Europe is not slowing its regulatory push. Tax reporting, market conduct, licensing and consumer protection are being tied together into a single framework that is meant to work across 27 countries. The friction now is part of that process.

In the long run, this could lead to a more predictable environment for firms that want to operate across borders in the EU.

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