In the past decade, the utilization of blockchain and its adoption of a distributed ledger have proven their capacity to revolutionize the financial sector, inspiring numerous initiatives from businesses and entrepreneurs. This emerging industry has increased the need to be compliant. Cryptocurrency companies encounter various challenges, both operational and regulatory, underscoring the need for tax and accountancy assistance. In this dynamic landscape, our specialists are adapting and prioritizing regulatory compliance. Staying ahead of regulatory frameworks is essential, ensuring businesses' continued success within the cryptocurrency space.

Impact of cryptocurrency and digital assets 
on your organization

In being compliant you might be facing some challenges:

  1. Complexity of (tax) laws: The tax treatment of cryptocurrencies is often difficult and can vary depending on the country and nature of activities. We can help understanding how to report and tax your operations to comply with local laws and regulations.
  2. Accounting challenges: Keeping track of financial data related to crypto transactions can be complex due to market volatility and the nature of activities such as mining, staking, and trading across different platforms. We can assist in accurately recording and reporting these transactions.
  3. Regulatory aspects: Cryptocurrency companies face increasing regulatory pressure due to concerns about money laundering and tax evasion. Compliance with regulations such as Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements can be challenging without proper tax and accountancy support.
  4. Audit requirements: For larger cryptocurrency companies or those seeking external funding, an audit of their financial statements may be required. Our accountants can help prepare these financial statements and ensure compliance with audit requirements.

How can we help you

We provide clients with cutting-edge advice, employing an integrated approach that includes tax, accounting, audit, and advisory.

Grant Thornton Netherlands offers a wide range of services. This includes the compilation of financial statements, audit of financial statements, and preparation and filing of Corporate Income and Personal tax returns. We also provide tax advice for various cases, like M&A and financing. Regarding tax compliance, our team can coordinate tax compliance obligations when various countries are involved. Our legal department can assist you in drafting employment contracts and everything in the field of corporate law related to crypto.

If you want to restructure the group or expand into the Netherlands or a country outside the Netherlands, our team and our international network can assist you with the whole process. From the setup of a company to the filing of all relevant tax returns. And of course, we can evaluate your businesses to comply with existing and upcoming regulations.

Our services

  • Compliance and advice regarding DAC8;
  • Compliance and advice regarding the Markets in Crypto-Asset regulation;
  • International tax consulting around Initial Coin Offerings (ICOs);
  • Transfer Pricing analyses and documentation and;
  • Intellectual property planning;
  • Structuring analysis around ICOs;
  • Location analyses for launching ICOs with our partners worldwide.
  • Portfolio management;
  • Risk assessment and mitigation.

Your benefits

  1. Tax Optimization: Our expertise enables entrepreneurs to take advantage of tax benefits and deductions that may be overlooked if they manage their taxes themselves. This can help reduce the tax burden and strengthen the financial position of the business.
  2. Risk Management: Through regular auditing and analysis of financial data, we can help identify and manage risks, allowing you to improve your operation and avoid potential problems with authorities, for example.
  3. Time and Cost Savings: Outsourcing tax and accountancy services can save time and money. You do not need to learn and apply all complex tax and accounting rules yourself, which can prevent costly errors and allow you to focus on your core business activities.
  4. Customized Advice: We can provide personalized advice tailored to your specific needs and goals. This helps to identify growth opportunities, improve efficiency, and achieve strategic objectives.

Legislation and regulations for cryptocurrency and digital assets

The DAC directive is a European system for administrative cooperation between the national tax authorities of EU member states. The DAC directive lays down the rules and procedures for the exchange of information for tax purposes. The DAC applies to all taxes except:

  • Value-added tax (VAT) and customs duties;
  • Excise duties;
  • Compulsory social security contributions.

The DAC directive has been amended several times in the past. Under DAC8 (seventh amendment of the DAC directive), 'Crypto-asset Service Providers' - such as exchanges where crypto-assets can be traded - will be required to carry out know-your-client procedures on EU customers that hold crypto-assets, regardless of whether the providers themselves are based in the EU.

DAC8 provides for an obligation to collect and verify information relating to crypto-assets in accordance with the due diligence rules proposed in DAC8. Your company must provide the required information on your users to the tax authorities. You must notify each user who holds crypto-assets on its platform. Besides, users have to be notified that certain information about them will be collected and reported to the tax authorities.

Find out more about DAC8, DAC7 (exchange of information for digital platforms), and DAC6 (exchange of information regarding tax constructions that meet certain hallmarks). 

 

Watch our video on DAC8: reporting requirements for crypto and digital asset service providers

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Monique Pisters, Head of Tax, explains DAC8 in more detail in this video. 

Why Grant Thornton

Grant Thornton Netherlands provides an experienced team ready to support you in pursuing business opportunities while being mindful of the potential risks associated with a well-considered and informed approach. Our team is well-equipped to guide you through the rules that may affect your business.

Frequently asked questions about cryptocurrency and digital assets answered

Why is compliance with upcoming laws and regulations crucial for companies in the crypto sector?

Compliance with laws and regulations is essential for companies in the crypto sector for several reasons. Firstly, it contributes to maintaining the trust of investors, users, and regulators. In an emerging industry like the crypto sector, trust is a valuable asset, and compliance demonstrates a company's willingness to take responsibility. 

What is DAC8 and the Markets in Crypto-asset Regulation?

DAC8 mandates that all service providers, irrespective of their scale or geographical location, must report on crypto asset transactions conducted by their clients within the European Union.

The Markets in Crypto asset regulation will establish the criteria for entry into the EU market for crypto assets.

When do DAC8 and the Markets in Crypto-asset Regulation come into effect?

DAC8 will enter into force as of 1 January 2026. The Markets in Crypto-asset Regulation entered into force in June 2023. The Markets in Crypto-asset Regulation rules will take effect in 2024.  

What information should be sent to the Dutch tax authorities concerning crypto holdings under DAC8?

Crypto asset Users:

  • Legal name;
  • Legal address;
  • Member State of residency;
  • TIN;
  • Place of birth in case of an individual.

Crypto-Asset holdings:

  • The full name of the type of crypto-asset;
  • Gross amount paid and received;
  • The fair market value of the crypto-asset;
  • The aggregate number of units of crypto-assets
  • and the number of transactions.
What are some use cases for blockchain?

Blockchain technology is valuable when participants need assurance that transactions are accurately recorded, secure, and unchangeable. Its applications include contracts, regulatory compliance, secure information sharing, credential verification, and privacy-focused solutions. Other use cases involve asset and supply chain management, digital identity verification, and asset tokenization (for example real estate).

Our experts

Monique Pisters
Monique Pisters
Partner | Head of tax
Rotterdam
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Michiel Maas
Michiel Maas
Partner Tax
Rotterdam
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