Bulgaria’s National Assembly has approved changes to the Tax and Social Security Procedure Code that will give the country’s National Revenue Agency access to detailed information about crypto-asset users. The final vote on Sept. 9 passed 149–0 in the 240-seat chamber, with 10 abstentions.

The measure was introduced by the Cabinet as part of Bulgaria’s adoption of two European Union directives designed to improve tax transparency and limit tax evasion. Under the new framework, information reported in Bulgaria will also be available for exchange with tax authorities in other EU member states and partner jurisdictions.

What the new rules require

The amendments require companies dealing in crypto assets to register and provide user information to the National Revenue Agency. The reported data includes names, addresses, dates and places of birth, tax residency details, and tax identification numbers.

Firms must also file transaction-level information for each type of crypto asset they handle. That covers the total gross amount received, the number of units traded, the number of purchases or sales involving fiat currencies, and crypto-to-crypto transactions.

Part of a wider EU tax framework

The Bulgarian law transposes two EU directives intended to close reporting gaps around digital assets and strengthen efforts against tax avoidance. The broader objective is to make it harder for individuals and companies to use cross-border crypto activity to remain outside the view of tax authorities.

EU member states were required to adopt the directives by Dec. 31, 2025. By aligning its code with those rules, Bulgaria is setting up a system under which tax data linked to crypto transactions can be exchanged across borders with other EU countries and partner jurisdictions.

Debate over privacy and compliance costs

The vote quickly drew criticism on social media from privacy advocates, who argued that the scale of mandatory reporting is excessive. Some warned that collecting extensive personal information on lawful crypto users could create security risks, while others said the changes resemble surveillance rather than narrowly targeted tax transparency.

Crypto traders and smaller businesses also raised concerns about the cost of complying with the new requirements. Some said the added registration and reporting burden could force smaller providers out of the market and weaken Bulgaria’s competitiveness in the regional fintech sector.

Supporters say the law closes a gap

Backers of the amendments said the legislation brings Bulgaria into line with standards already used elsewhere in the EU. Supporters argue that broader reporting is necessary to address tax evasion linked to digital assets and to remove a loophole in cross-border enforcement.

Financial-policy commentators described the changes as overdue and said closer information sharing should make international tax cooperation more effective. The next confirmed step is implementation of the EU-aligned rules by the Dec. 31, 2025 deadline.

Source: news.bitcoin.com