The European Union has officially approved the DAC8 Directive, introducing stricter tax reporting obligations that directly affect crypto assets and service providers.
Starting January 1, 2026, the new framework will require Crypto-Asset Service Providers (CASPs) to collect and report detailed data on their clients’ transactions. This information will then be automatically exchanged among EU member states’ tax authorities, ensuring greater transparency and reducing opportunities for tax evasion.
The directive, which expands the scope of the EU’s administrative cooperation on taxation, is seen as a major step toward aligning crypto regulations with traditional financial reporting standards. According to the European Commission’s Taxation and Customs Union, the goal is to close existing gaps in cross-border tax compliance and bring uniformity to how crypto-related income is monitored.
Leading tax experts, including analysts from EY, note that DAC8 will introduce a heavier compliance burden for CASPs, as firms must establish new processes for data collection, identity verification, and regular reporting. However, they also highlight that the directive may strengthen investor confidence by creating a more transparent and secure crypto investment environment across Europe.
With the EU continuing to develop its MiCA (Markets in Crypto-Assets Regulation) framework alongside DAC8, industry players expect a significant transformation of the European digital asset market, where both service providers and investors will face higher standards of accountability.
