EU New Crypto Asset Taxation Regulation DAC8 Officially Enters into Force: Companies Must Complete Compliance by July, User Transaction Information Will Be Fully Transparent

According to CoinDesk, the latest EU crypto asset tax transparency law (DAC8) will officially take effect on January 1, 2026.

This directive extends the current EU tax administrative cooperation framework to the crypto asset sector and requires all crypto exchanges, custody platforms, and other service providers operating within the EU to collect and report detailed user identity information and transaction data to their national tax authorities; at the same time, relevant tax information can be automatically exchanged between EU member states.

In addition, this regulation operates in parallel with the already implemented Markets in Crypto-Assets Regulation (MiCA), with clear division of responsibilities. MiCA mainly regulates market access, operation, and consumer protection for crypto enterprises; while DAC8 focuses on tracking the flow of crypto asset taxation, filling the gaps in tax collection within the crypto sector.

Although the regulation officially took effect on January 1, 2026, relevant companies are still granted a six-month transition period for compliance. All crypto asset service providers must complete comprehensive reforms of reporting systems, customer due diligence, and internal control systems before this effective date to fully meet DAC8 compliance requirements.

Entities that fail to complete compliance on time will be subject to penalties according to the laws of their respective EU member states. If tax authorities verify tax evasion or avoidance behaviors, DAC8 authorizes national tax agencies to take enforcement actions with the support of cooperation among EU member states, including seizing, confiscating, and collecting overdue taxes related to crypto assets. Such enforcement actions are not limited by the jurisdiction of the assets or platforms.

For users, this means higher tax transparency for crypto asset holdings and transactions, and the cross-border data sharing and collaborative verification capabilities of tax authorities will also be significantly enhanced. Therefore, both crypto companies and individuals need to take tax compliance seriously to ensure adherence to relevant regulations.

#DAC8 #EU Tax Directive