Cryptocurrency service providers will be obliged to declare their users' funds

Since the downward cycle in the cryptocurrency market began, I have been observing how every time there is a rebound in the price action, a series of regulatory events that impact on the balance and recovery of prices follow.

So far this year, a pool of regulations has been emerging from Europe that have had a negative impact on the levels of recovery that the cryptocurrency market has developed, namely recently when the market was beginning to show signs of balance, a new regulatory episode arose in the European Union where it is intended to force cryptocurrency companies to declare their users' holdings.

This new regulatory facet led by the European Union is another hard blow for the cryptocurrency market, this time the European Council wants to extrapolate the mandatory declaration of assets to companies related to Bitcoin and cryptocurrencies.

In this sense, and according to information disclosed in multiple financial news portals, the main objective of the Cryptoasset Markets Regulation led by the European Union is to force companies providing services with cryptocurrencies to report the holdings of their users.

Therefore, the regulation seeks that companies and financial intermediaries to report users' funds to the tax administrations of EU countries, will also apply to cryptocurrency companies.

It has been reported that companies highlight cryptoasset exchanges, brokers and other platforms that are related to cryptocurrencies. It is these companies that are best placed to collect and verify the necessary information from their users.

Criptonoticias. European Union to force cryptocurrency companies to declare their users' holdings. Link

The cover image was designed by the author: @lupafilotaxia, incorporating image: CNBC