The European Union has formally expanded its tax transparency framework to crypto assets after DAC8 entered into force on Jan. 1, 2026. The directive extends automatic exchange of information rules to crypto transactions and related income, marking the bloc’s first unified tax reporting regime designed specifically for digital assets. DAC8 builds on earlier cooperation frameworks used for bank accounts and financial instruments. This time, however, the scope widens to cover crypto asset service providers operating inside or targeting the EU. As a result, tax authorities across member states now gain a standardized channel to collect and share crypto-related data. The move comes as governments continue to close reporting gaps linked to cross-border crypto activity. EU officials have repeatedly said fragmented national rules left room for underreporting. DAC8 aims to remove those blind spots by aligning tax data collection across all 27 member states. What DAC8 Requires From Crypto Platforms From Jan. 1, 2026, crypto platforms must begin collecting customer tax information, even though formal reporting will come later. The rules apply to “reporting crypto asset service providers,” which include exchanges, brokers, and platforms that execute or facilitate crypto transactions for users. Providers must identify users who are EU tax residents and collect verified personal data. This includes names, addresses, dates of birth, and tax identification numbers linked to each member state of residence. The directive ties these requirements to customer due diligence and self-certification processes. DAC8 also requires platforms to track transaction-level activity by crypto asset type. While it does not classify crypto as legal tender, it treats crypto transfers and disposals as reportable events when they involve EU residents. The aim is to create a consistent dataset that tax authorities can compare across borders. Reporting Timeline and Broader Context Although data collection starts in 2026, actual reporting will begin in 2027. Providers must submit annual reports covering the 2026 calendar year to their national tax authority. EU authorities will then exchange that information across member states by Sept. 30, 2027. This timeline mirrors the OECD’s Crypto Asset Reporting Framework, which influenced DAC8’s design. By syncing its system with global standards, the EU hopes to reduce regulatory arbitrage and improve cooperation with non-EU jurisdictions. DAC8 also complements MiCA, the EU’s crypto market regulation. While MiCA focuses on licensing and consumer protection, DAC8 targets taxation and data sharing. Together, the two frameworks signal a shift toward full regulatory coverage of crypto activity inside the bloc, from trading rules to tax enforcement.
