The European Union will begin applying its new crypto tax transparency regime from January 2026, bringing digital assets into the same automatic information-sharing framework long used for bank accounts and securities. The rules, set out under DAC8, significantly expand the ability of tax authorities to track crypto holdings and transactions across borders.
DAC8 is the latest update to the EU’s Directive on Administrative Cooperation and is designed to close what policymakers describe as a major blind spot in tax enforcement. While crypto trading and custody have grown rapidly in recent years, reporting obligations have lagged behind, allowing gains to go undeclared in many cases.
Under the new regime, crypto-asset service providers operating in the EU will be required to collect and report detailed information on customers who are resident in member states. This data will be submitted to national tax authorities and automatically shared with other EU countries, enabling cross-border checks of crypto income and holdings.
A new compliance layer for crypto firms
The reporting obligation applies to a broad range of crypto-asset service providers, including exchanges and brokers, using definitions aligned with the EU’s Markets in Crypto-Assets framework. While DAC8 is a tax measure rather than a financial regulation, it is closely linked to MiCA, ensuring consistent terminology and scope across EU crypto law.
EU governments must transpose DAC8 into national law by the end of 2025. Reporting will cover activity from the 2026 tax year, with the first data exchanges expected in 2027. Enforcement, including penalties for non-compliance, will be handled at the national level, but within a coordinated EU framework.
The European Commission says the objective is fairness rather than punishment, arguing that crypto assets should be subject to the same transparency standards as other financial instruments. However, the practical effect for users is clear: crypto transactions within the EU will become far more visible to tax authorities.
For policymakers, DAC8 is a key building block in bringing digital assets fully inside Europe’s regulatory and fiscal perimeter. For the crypto industry, it represents another step away from the sector’s early era of opacity and toward full integration with the traditional financial system.