14/01/26
The regulatory landscape for crypto-assets in the European Union is undergoing a major shift. Starting January 1, 2026, the eighth amendment to the Directive on Administrative Cooperation commonly known as DAC8 will enter into force, introducing mandatory reporting obligations for the crypto sector.
What is DAC8?📊
DAC8 extends the EU’s existing tax transparency framework to include crypto-assets, aiming to combat tax fraud, evasion, and avoidance. By requiring the automatic exchange of information between Member States, it ensures that tax authorities have the data necessary to verify taxpayer liabilities rather than relying solely on self-declared data. It is designed to align with the MiCA Regulation and the OECD’s Crypto-Asset Reporting Framework (CARF).
Who Must Comply?🌐
The directive introduces the concept of the Reporting Crypto-Asset Service Provider (RCASP).
The scope is broad and includes:
Crypto exchanges and over-the-counter brokers.
Wallet service providers and token exchange platforms.
Token issuersand any intermediary facilitating transactions.
Non-EU providers that serve EU tax residents, regardless of whether they have a formal presence in the EU.
What Activities are Reportable?💸
RCASPs will be required to collect and report detailed data on a wide range of activities, including:
Exchanges between crypto and fiat currency.
Crypto-to-crypto swaps (e.g., ETH for USDT).
Transfers of assets between user wallets.
Transactions involving stablecoins, e-money tokens, and certain NFTs.
Both domestic and cross-border transactions are covered. Required data includes the user’s full name, address, Tax Identification Number (TIN), and detailed transaction values in fiat currency.
The Clock is Ticking⏳
Member States must transpose DAC8 into national law by December 31, 2025. While some countries may experience legislative delays, the reporting duty for 2026 activity remains firm, with the first reports due to authorities by early 2027.
Failure to comply can lead to significant penalties. The directive requires Member States to implement "effective, proportionate, and dissuasive" sanctions, which in some jurisdictions could reach tens of thousands of euros.
How to Prepare?🛠️
Businesses should not wait for local legislation to begin preparations. Key steps include:
1. Updating KYC/AML procedures to collect DAC8-compliant data (like TINs).
2. Adjusting onboarding processes for EU residents.
3. Implementing systems to track and categorize reportable transactions automatically.
At NUR-Legal, we specialize in navigating complex EU regulations to ensure your business remains compliant and secure.
🌍 Visit us at NUR-Legal.com or contact us directly at info@nur-legal.com to discuss how we can help you prepare for the DAC8 transition.
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Melisa Dogan