Latvian authorities approve new reporting requirements for cryptocurrency service providers
Date: 2025-06-11 Author: Gabriel Deangelo Categories: IN WORLD
The Latvian government has approved draft law No. 24-TA-3148, which is designed to adapt national tax legislation to the standards of the Crypto Asset Reporting Framework (CARF) and the EU DAC8 directive. The document sets obligations for cryptocurrency service providers — from exchanges to custodian companies — to automatically exchange tax information with tax authorities in other EU countries. Failure to comply with these requirements will result in fines of up to 14,000 euros (approximately $16,000).
The draft law clearly sets out the criteria by which crypto assets and transactions with them are considered accountable, and also eliminates gaps that allow some companies to bypass tax regulations. Previously, this could manifest itself in a refusal to declare income from transactions with digital currencies, including trading and transfers between wallets, citing a lack of specific requirements in the legislation.
The new rules are scheduled to be introduced on January 1, 2026, which coincides with the pan-European deadline for the entry into force of the DAC8 directive - December 31, 2025. Control over the implementation of the regulations is assigned to the Bank of Latvia, which is responsible for licensing crypto services, and the State Tax Service (SRS), which controls tax reporting.
The official statement of the regulators emphasizes that these measures are aimed at increasing the transparency of the cryptocurrency market in Latvia and strengthening its position as one of the leading centers of blockchain innovation in the Eurozone. After approval by the government, the bill was submitted to the Saeima of Latvia for consideration and approval.
Meanwhile, Coinidol reported on the start of bankruptcy proceedings against Lithuanian cryptocurrency provider Trastra EU, which has suspended users' access to their assets in both crypto and fiat currencies. This event has become an additional signal of the importance of tightening control in the field of crypto services at the regional level.
