EU Enforces New Tax Transparency Law for Digital Assets
According to the Economic Desk of Webangah News Agency, the European Union has rolled out the 8th Directive on Administrative Cooperation (DAC8), a landmark regulation that extends the bloc’s long-standing framework for tax administrative cooperation to digital assets and related service providers. The new rules mandate crypto asset service providers, including exchanges and brokers, to collect and report detailed user and transaction information to national tax authorities, who will then share the data across EU member states.
This move is significant as it closes a loophole that previously exempted parts of the crypto economy from standard tax reporting. Under DAC8, authorities will gain clearer visibility into crypto assets, transactions, and transfers, mirroring the transparency already applied to bank accounts and securities.
DAC8 operates alongside but separately from the Markets in Crypto-Assets Regulation (MiCA), which was adopted in April 2023 to govern crypto company licensing, consumer protection, and market operations. While MiCA regulates market conduct, DAC8 focuses on tax compliance, providing authorities with the data needed to assess and enforce tax obligations.
Enforcement begins on January 1, but crypto companies have a transition period. Service operators have until July 1 to fully align their reporting systems, customer due diligence processes, and internal controls with the directive. Failure to comply after this deadline may result in penalties under national laws.
For crypto users, the directive carries significant consequences. If tax authorities detect avoidance or evasion, DAC8 allows local agencies to take action with support from counterparts in other EU countries. This cooperation includes the power to sanction or seize crypto assets linked to unpaid taxes, even if the assets or platforms are outside a user’s home jurisdiction.
