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The EU implements strict reporting rules for digital assets, posing significant challenges to cryptocurrency privacy.
The European Union has launched a series of stringent reporting regulations for digital assets, which will reshape the operational models of crypto assets companies in the EU. Regulators aim to prevent tax evasion and financial crime, but the new rules significantly undermine the privacy protection of crypto assets.
According to the revised Directive on Administrative Cooperation (DAC8), starting from January 1, 2026, digital asset operators must comply with mandatory reporting obligations. Exchanges and wallet providers are required to provide standardized trading data to regulatory authorities; even if an operator is deregistered, user information will still be retained. The new implementing regulation (EU) 2025/2263 requires the disclosure of information using a fixed computer format, with each registered operator receiving a unique 10-digit identification code to enable regulatory authorities to track the flow of funds more effectively. Member states are also required to submit annual assessment reports to ensure regulatory consistency and automatically share data, thus placing greater pressure on encryption privacy.
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