Exchanges to freeze trading and withdrawals after countdown under new crypto law – how long do you have?
New EU DAC8 rules start data collection on Jan 1, 2026, potentially leading to trading freezes if users don't provide tax IDs.Summary
The European Union's DAC8 directive mandates that crypto service providers begin collecting tax data from EU residents starting January 1, 2026, with the first full-year reports due by September 30, 2027. This regulation expands tax visibility by requiring reporting on exchanges between crypto and fiat, crypto-to-crypto exchanges, and transfers, including withdrawals to unhosted or self-custody addresses. While claims of an instant, blanket freeze are overstated, providers must prevent users from performing "Reportable Transactions" if they fail to provide a Tax Identification Number (TIN) after two reminders over 60 days, which can effectively cut off trading and withdrawal flows for non-compliant users. DAC8 shifts the compliance burden to onboarding and identity verification, ensuring that activity originating from regulated platforms leaves a standardized, reportable information trail for tax administrations starting in 2027, aligning the EU with global reporting frameworks like the OECD's CARF.
(Source：CryptoSlate)