Money Control and Crypto: A New Era of Fiscal Data Mining
- Aeacus Lawyers
- 2 days ago
- 5 min read
The Belgian federal government is developing a legal framework that would allow the tax authorities to scrutinize the entire Belgian banking system through large-scale data mining (“Money Control”). What has until now been an exceptional investigative tool would become a structural and automated component of fiscal oversight. This shift fits within the broader digitalisation of tax enforcement and carries specific implications for taxpayers who hold or have realised crypto-assets. As we noted in an earlier article, the intensity of fiscal scrutiny on crypto continues to increase. With this new data-mining model, the government moves yet another step closer to what can only be described as the beginning of a new hunting season targeting unexplained financial flows.
1. From traditional bank oversight to automated fiscal data mining
The Central Contact Point at the National Bank (CCP) already holds data reported by financial institutions, including the existence of bank accounts and the half-yearly balances recorded on 30 June and 31 December. The new framework goes significantly further. It would allow these CCP data to be automatically cross-referenced with various tax databases containing information on income, real estate, contractual financial obligations and, increasingly, crypto-related data.
2. Money Control and Crypto: Screening the Entire Population
The essence of Money Control is that additional data will no longer be requested only when there are concrete indications of fraud. Instead, a preliminary screening of the entire population would become the starting point for enforcement, giving the tax authorities immediate visibility of asset movements that do not align with declared income. Crucially, this model allows different databases to be cross-referenced, including crypto exchange transactions and tax returns.
The tax authorities also take the position that foreign accounts, including those held with crypto exchanges, must be reported to the Central Contact Point. This view is further reinforced by a bill currently under parliamentary discussion, which explicitly provides that foreign crypto accounts fall within the reporting obligation. Combined with the information that Belgium will receive from foreign exchanges under DAC8, data mining will make it remarkably easy to identify taxpayers who hold a foreign crypto account but have not declared it. Once the received data are linked to the CCP database, the administration can immediately detect which holdings are missing from the reports. Any such discrepancy may be flagged automatically and can trigger an audit.
The data mining model also allows declared income to be directly compared with activity on foreign crypto exchanges. Consider an individual with an average salary who purchases three BTC. The system may flag such a transaction as atypical solely because of the discrepancy between that income level and the size of the crypto acquisition. This automated selection can then be forwarded to an auditor, who will examine how someone with an average income obtained the resources to finance such a purchase. At that point, the taxpayer must be able to demonstrate the lawful origin of the funds.
In practice, we note that many clients have made one or more tax errors in the past, often unintentionally or due to conflicting information. With the introduction of Money Control, such situations will surface far more quickly within the administration.
3. Staying out of sight of the tax authorities?
One of the few ways in which taxpayers can still avoid direct visibility for the tax authorities is by holding crypto assets in a non-custodial wallet and carrying out transactions through decentralised platforms. This form of anonymity is however only temporary. Once these assets are converted into fiat and transferred to a bank account, an immediate trace is created that will be detected through Money Control. At that point, the movement of funds is automatically identified and becomes visible to the administration.
4. Transparency, legal protection and future
The legitimacy of Money Control depends closely on the transparency of the selection criteria and the safeguards that accompany the system. It also raises the broader question of whether this level of monitoring is compatible with the right to privacy. A mechanism that identifies taxpayers without revealing the underlying logic or parameters places significant pressure on the principles of good administration. This is particularly relevant in the crypto context, where the distinction between normal capital accumulation and taxable speculative income is highly fact-dependent. A purely algorithmic preselection can easily lead to misinterpretations. Although the tax authorities unquestionably have the power to tax speculative gains, that power requires a detailed assessment of the factual circumstances. Data mining may generate alerts, but it can never replace human judgment. This fuels concerns that the burden of proof risks shifting onto the taxpayer.
The broader policy landscape is evolving at the same time. The reporting obligation for foreign crypto wallets, the European MiCA and DAC8 frameworks that increase reporting duties for exchanges, and the forthcoming general capital gains tax on crypto collectively create an environment in which the administration receives ever more information from both traditional financial channels and digital infrastructures. The Money Control model links these information streams. Large inflows of funds originating from crypto will be automatically connected to the taxpayer’s fiscal profile and declared income. The long-standing idea that crypto sits beyond the reach of the tax authorities is no longer defensible, particularly when assets are held on custodial exchanges.
It remains important to underline that Money Control is not yet operational. The proposal is still under discussion in parliament and no implementing legislation has been enacted. For crypto investors, 2027 will be a key moment because foreign crypto exchanges will then begin reporting information to the Belgian authorities for the first time on the basis of transactions and data from 2026. Until then, there is still time to remedy past tax mistakes or to prepare a coherent strategy before this new reporting regime becomes fully effective.
Conclusion
Money Control, if ultimately adopted, represents a profound shift in the way the tax authorities monitor asset flows, with a particular impact on crypto transactions. It fits within the broader trend toward the digitalisation of tax enforcement, yet its legitimacy will depend on the existence of clear safeguards and genuine transparency regarding the criteria used to select taxpayers for further scrutiny. For individuals active in the crypto sphere, this development underscores the growing importance of accurate documentation and fiscal transparency, especially as foreign exchanges will begin reporting to the Belgian authorities from 2027 onwards. The coming years will show how these new mechanisms will reshape the fiscal landscape and how the government balances effective oversight with the protection of individual rights. In any event, it is prudent to seek advice in time and to ensure that your fiscal affairs are properly structured before this new framework becomes fully operational.
If you have any other questions about crypto, be sure to check out our Frequently Asked Questions (FAQ)
Christophe Romero Senne Verholle
