Key Takeaways
- Bulgarias National Assembly voted 149–0 on Sept. 9 to give the National Revenue Agency access to crypto user data.
- Mandatory data reporting raises compliance costs for small crypto firms, threatening regional fintech competitiveness.
- The law transposes 2 EU directives by Dec. 31, 2025, enabling cross-border data sharing to stop tax avoidance.
Lawmakers Approve EU-Aligned Legislation
Bulgarias National Assembly on Sept. 9 approved the final reading of amendments to the Tax and Social Security Procedure Code that will give revenue officials access to detailed information on crypto‑asset users. Lawmakers voted 149–0 in the 240‑seat chamber, with 10 abstentions.
The bill, introduced by the Cabinet, transposes two European Union (EU) directives aimed at improving tax transparency and curbing tax evasion. Under the changes, tax authorities across the EU and partner jurisdictions will be able to exchange information on individuals and companies trading in crypto assets.
The amendments require companies dealing in crypto assets to register and report user data to the National Revenue Agency. The information includes names, addresses, dates and places of birth, tax residency details and tax identification numbers.
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Providers must also submit transaction‑level data for each type of crypto asset handled, including the total gross amount received, the number of units traded, the number of purchases or sales against fiat currencies, and crypto‑to‑crypto transactions.
EU member states were required to adopt the directives by Dec. 31, 2025. The measures are intended to close reporting gaps and strengthen efforts to combat tax avoidance involving digital assets.
The vote triggered immediate discussion on social media, with privacy advocates criticizing the scope of data collection, calling it excessive and warning that mandatory disclosure of personal details could expose users to security risks. Others argued that the amendments go far beyond tax transparency and amount to surveillance of lawful digital‑asset activity.
Crypto traders and small businesses expressed concern about compliance costs. Some said the registration and reporting requirements would push smaller providers out of the market and make Bulgaria less competitive in the regional fintech sector.
Supporters of the bill welcomed the move, saying it aligns Bulgaria with EU standards and helps prevent tax evasion. Financial‑policy commentators described the amendments as long overdue, noting that similar frameworks are already in place in other member states. The legislation is also seen closing a major loophole and will make cross‑border tax cooperation more effective.