EU’s DAC8 takes effect Jan. 1, pulling crypto exchanges into cross-border tax reporting
The EU's DAC8 directive begins January 1, mandating crypto service providers report user transaction data for cross-border tax enforcement.Summary
The European Union's new tax transparency law for digital assets, known as DAC8, takes effect on January 1, extending the existing administrative cooperation framework to crypto assets and service providers like exchanges and brokers. This directive requires these entities to collect and report detailed user and transaction information to national tax authorities, which then share the data across member states, closing a significant gap in crypto tax visibility. While DAC8 starts applying on January 1, crypto firms have until July 1 to achieve full compliance with reporting systems and due diligence processes. Failures to comply after this deadline risk penalties under national law. Crucially, DAC8 empowers tax authorities to cooperate across borders, including the power to embargo or seize crypto assets linked to unpaid taxes, even if the assets are held outside the user's home jurisdiction. DAC8 operates separately from the MiCA regulation, focusing strictly on tax compliance rather than market conduct.
(Source：CoinDesk)