The EU intensifies taxation on cryptocurrencies; DAC8 law officially takes effect.
TL;DR
The EU's DAC8 directive, effective January 1, mandates crypto service providers to report user and transaction details to tax authorities, closing regulatory gaps and aligning crypto with traditional financial oversight. Businesses have a transition period to comply.
Tags
According to ChainCatcher, the EU's latest Directive on Digital Asset Tax Transparency will take effect on January 1, formally incorporating cryptocurrency activities into the EU's tax reporting system.
The directive, known as DAC8, requires crypto asset service providers to collect and report detailed information about users and transactions to national tax authorities, who then share this data among EU member states. This change fills a long-standing gap where certain parts of the crypto economy were previously subject to less regulatory scrutiny than traditional financial accounts. Under DAC8, tax authorities can regulate the holding, trading, and transfer of cryptocurrencies in a transparent manner, much like they would a bank account. Stock exchanges, brokers, and other crypto service providers must now treat tax reporting as a core operational requirement, not a secondary compliance matter. While the directive took effect on January 1, businesses have a limited transition period to adjust their systems before enforcement.