Implementation of DAC8: What the new EU directive means for crypto services

Since January 1, 2026, the European Directive DAC8 has come into force, marking a turning point in the regulation of cryptocurrency activities. This measure aims to prevent anonymous transactions on regulated platforms and significantly enhance financial transparency within the EU. Crypto service providers must prepare for extensive new reporting requirements, while users will need to document their digital activities more thoroughly.

Specific Requirements of DAC8 for Exchanges and Service Providers

DAC8 imposes strict documentation obligations on crypto exchanges and other service providers. They are required to record the following user data during transactions and report it to tax authorities:

• Full name and address of the transaction participants
• Personal tax number
• Comprehensive details of the transaction itself

A particularly significant aspect is the expansion of the reporting obligation: not only crypto-to-fiat transactions must be reported, but also crypto-to-crypto transactions and transfers to private wallets. This broad scope closes gaps previously exploited for anonymous activities.

Tax Transparency and Increased Compliance Risks

Although DAC8 does not introduce new types of taxes, the directive significantly increases tax transparency. Users can no longer hide unreported or incompletely documented crypto activities. This leads to several immediate consequences:

• Increased risk of detection for unreported transactions
• Greater pressure on users to keep detailed records
• Necessity to trace all movements thoroughly

For crypto service providers, this also means heightened compliance requirements and potential sanctions for non-compliance with reporting obligations. DAC8 thus sets new standards for the regulation of digital assets in Europe.