The European Union is entering a new era that will fundamentally change tax oversight of cryptocurrencies. The EU’s DAC8 regulation, aimed at increasing tax transparency in digital assets, will officially come into effect on January 1, 2026.
The new rules introduce significant changes to how cryptocurrency activity is reported and monitored across the EU.
Under DAC8, crypto asset service providers (exchanges, brokers, and similar platforms) are required to collect detailed information about their users and transactions and report it to their national tax authorities. This collected data will be shared among the tax administrations of member countries. This will create a much more comprehensive structure for monitoring and taxing cross-border crypto transactions.
One of the most notable aspects of the regulation concerns individual crypto users. In cases where tax evasion or avoidance is detected, DAC8 empowers local regulators to cooperate with their counterparts in other EU countries. This cooperation will not be limited to information sharing; it will also allow for the freezing or seizure of crypto assets linked to unpaid taxes.
Moreover, these sanctions can be applied even if the relevant crypto assets or the platforms on which they are traded are not located in the user’s country. In this respect, DAC8 stands out as one of the most comprehensive and enforceable tax regulations targeting crypto assets in EU history.
*This is not investment advice.
