European Commission Enforce Crypto Compliance

The European Commission has intensified enforcement of its evolving crypto‑asset regulatory framework by opening infringement procedures against a dozen European Union member states that have failed to fully transpose key digital asset rules into national legislation. As set out in the Commission’s January 2026 package of infringement decisions, formal letters of notice have been sent to countries including Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland and Portugal for missing the deadline to implement updated crypto tax transparency and information exchange obligations. 

At the centre of the enforcement action is Directive (EU) 2023/2226, an amendment to the EU’s Directive on Administrative Cooperation that expands reporting requirements to include crypto‑asset service providers (CASPs). These rules align with global standards such as the OECD’s Crypto‑Asset Reporting Framework and aim to compel CASPs, including exchanges and custodial wallet operators, to report detailed user and transaction data to national tax authorities. Those authorities must then share this information automatically with their counterparts across the EU, enhancing the bloc’s capacity to combat tax evasion and strengthen cross‑border cooperation. 

Member states were obligated to transpose the directive into domestic law by the end of 2025, with the rules coming into effect on 1 January 2026. The Commission has now given the lagging states two months to respond and correct their implementation gaps. Failure to do so may lead to a reasoned opinion, the next stage of the infringement process that can ultimately result in cases being referred to the Court of Justice of the European Union. 

The enforcement measures underscore Brussels’ determination to ensure the uniform application of the EU’s digital finance rulebook, including tax transparency and related standards tied to the Markets in Crypto‑Assets (MiCA)regulation. In a related action, Hungary has also been issued a separate notice over national legal changes deemed incompatible with MiCA, illustrating the Commission’s broader scrutiny of divergent regulatory approaches within the bloc. 

The Commission says these steps are essential for maintaining investor trust, legal certainty and regulatory coherence as crypto assets become increasingly integrated into EU financial markets.