TAXATION | What You Need to Know About the European Union (EU) New Crypto Tax Reporting Requirements

From January 1, 2026, European Union (EU) countries will start enforcing DAC8 – the Eighth Directive on Administrative Cooperation, extending automatic tax information exchange to crypto transactions for the first time. This effectively brings crypto into the same transparency system that already covers bank accounts and stock trades.

The rules are built around the OECD’s Crypto-Asset Reporting Framework (CARF), a global model adopted by dozens of jurisdictions.

Under this framework:

• Crypto-asset service providers (CASPs) such as exchanges, brokers, custodial wallets and similar intermediaries must collect and report detailed user and transaction data to their local tax authority.
• This information will then be automatically shared between EU tax authorities, closing gaps that previously allowed cross-border activity to evade detection.

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What Platforms Will Have to Report

Under DAC8, platforms must collect:

• User identity details (name, address, tax residency and tax identification number)
• Transaction records covering crypto sales, swaps, transfers and disposals
• The dates, values and gross proceeds of these transactions

This standardised reporting makes the crypto tax landscape far more transparent than before.

When Reporting Begins:

• Data collection: starts on January 1, 2026.
• First reports: platforms must submit information covering all 2026 activity to national tax authorities in 2027, generally within nine months of the year’s end.
• Exchange of data: authorities across EU member states will then share this information automatically to support enforcement.

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If you hold or trade crypto through a platform subject to DAC8:

• Expect more rigorous KYC and tax-residency verification during onboarding and account updates.
• Tax authorities will have a clearer, data-driven picture of your crypto activity, even across borders.
• You still must declare gains on your national tax return – DAC8 doesn’t set new tax rates but makes it harder to hide income.

Implementing DAC8 isn’t trivial. Platforms will need to overhaul reporting systems, integrate tax-residency checks and maintain secure data storage. Smaller providers may face significant compliance costs or reconsider operations in the EU.

Moreover, DAC8 works alongside the EU’s Markets in Crypto-Assets (MiCA) regime – MiCA governs licensing and conduct, while DAC8 focuses on tax transparency. Together, they form a more comprehensive regulatory framework for crypto in Europe.

The EU’s crypto tax reporting overhaul doesn’t change how much tax you owe but it dramatically increases visibility into your crypto activity for tax authorities. Platforms will soon act as de facto tax reporting agents, and cross-border crypto movement will no longer escape detection as easily as before.

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