Bulgaria's National Assembly has passed significant amendments to the Tax and Social Security Procedure Code, enabling tax authorities to access detailed information about cryptocurrency users. This unanimous vote, which concluded with a 149-0 tally, aligns with European Union directives aimed at improving tax transparency and preventing evasion.
The legislation mandates that companies dealing in crypto assets must register and report user data to the National Revenue Agency. This includes personal details such as names, addresses, and tax identification numbers, alongside transaction-level data for all crypto activities.
As part of the EU's push for enhanced cross-border tax cooperation, the new law is set to take effect by December 31, 2025. It aims to close reporting gaps and strengthen measures against tax avoidance involving digital assets.
However, the law has sparked a heated debate among stakeholders. Privacy advocates have raised alarms about the extensive data collection, labeling it as excessive and potentially harmful to user security. Concerns have also been voiced regarding the compliance burden on smaller crypto firms, which may struggle to meet the new reporting requirements.
Supporters of the legislation argue that it brings Bulgaria in line with EU standards and is a necessary step to combat tax evasion effectively. Financial analysts have noted that similar frameworks are already operational in other EU member states, making this move a long-overdue adjustment for Bulgaria.
