New Reporting Rules for Crypto Companies in Europe

The European Union has officially implemented Directive DAC8 (Directive on Administrative Cooperation 8), which establishes new rules for the automatic exchange of information on crypto-assets between EU member states within the framework of direct taxation. DAC8 represents an important step in the evolution of tax regulation for digital assets and reflects a global trend toward increasing transparency and oversight of capital flows in the crypto economy.

The main goal of the directive is to close gaps in tax reporting that have long existed in the area of cryptocurrencies, tokens, and other digital assets. Until now, many cryptocurrency transactions remained practically “invisible” to tax authorities, creating opportunities for tax evasion and circumvention of reporting obligations. DAC8 introduces standardized tracking and data exchange mechanisms similar to those applied to bank accounts, securities, and other financial instruments.

The directive largely relies on international initiatives developed by the Organisation for Economic Co-operation and Development (OECD). In particular, DAC8 is based on the Crypto-Asset Reporting Framework (CARF), which provides member states with a unified approach to collecting information on users, transactions, and types of crypto-assets. Additionally, the directive takes into account provisions of the Amended Common Reporting Standard (CRS), originally developed for automatic exchange of information on financial accounts, and adapts it to the specifics of the crypto economy, where assets may be held on exchanges, wallets, and decentralized platforms.

Key provisions of DAC8 include:

• Mandatory reporting for crypto-asset service providers (exchanges, wallets, DeFi providers) about clients, their transactions, and account balances.
  
  
  
• Identification of ultimate beneficial owners to ensure that information about cryptocurrency holders is not anonymous.
  
• Standardized forms for data exchange between tax authorities of EU countries, allowing automatic access to information on income, capital gains, and crypto transactions.
• Compliance monitoring, including reporting oversight and the ability to impose penalties for late or incomplete reporting.

The deadline for meeting DAC8 requirements is set for July 1, 2026. This means that all companies operating with crypto-assets in the EU must fully adapt their internal accounting processes, reporting systems, and compliance policies to the new standards by that date. Non-compliance carries significant fines, account freezes, and other administrative sanctions, highlighting the EU’s serious approach to regulating the crypto economy.

For crypto companies and investors, DAC8 presents both risks and opportunities. On the one hand, automatic information exchange increases transparency and reduces opportunities for tax evasion, strengthening oversight of the industry. On the other hand, compliance allows companies to build trust with institutional investors, improve their reputation, and prepare for further integration with the traditional financial system.

Thus, DAC8 is an important element in creating a mature, transparent, and accountable crypto market in the EU. The directive signals that digital assets are now viewed not as a niche phenomenon but as a fully-fledged part of the financial ecosystem that requires strict regulation and supervision. In the coming years, the implementation of DAC8 may set a precedent for other countries and regions seeking to establish unified reporting standards for the crypto industry and integrate digital assets into the global tax system.