The European Union (EU) is ready to implement DAC8 for crypto tax transparency. What is DAC8, you ask? The Directive on Administrative Cooperation is a comprehensive directive that will fundamentally change how crypto transactions are monitored and taxed.
DAC8 was adopted by the council of EU in October 2023. Now, starting 1 January 2026, crypto exchanges will be required to collect and report detailed user and transaction data to national tax authorities. However, companies have been granted six months, until 1 July 2026, to achieve full compliance. But will DAC8 be successful in closing critical gaps in crypto tax reporting? Or is it another crackdown on crypto?
To prevent tax evasion, DAC8 is meant to provide tax authorities with visibility over crypto holdings and transfers similar to what they currently have for traditional bank accounts and securities.
DISCOVER: 16+ New and Upcoming Binance Listings in 2025
All EU crypto-asset service providers (CASPs) will have to ensure reporting systems, customer due diligence procedures and internal controls by 1 July 2026.
Critically, DAC8 applies not only to UE headquartered firms but also any global platform serving EU residents. This basically means that the likes of Binance, Coinbase, Kraken must comply with DAC8. For individual users, DAC8 affects all EU tax residents.
And what information must be reported? The directive covers all “reportable crypto-assets,” including those used for payments or investments in BTC, ETH or other crypto. However, CBDCs and specific e-money tokens have been excluded from DAC8’s scope.
DAC8’s most powerful enforcement mechanisms is the automatic exchange of information between EU member states.
With 75 jurisdictions worldwide committing to the OECD’s Crypto-Asset Reporting Framework, similar reporting requirements are likely to emerge in other parts of the world.
EXPLORE: Best Meme Coin ICOs to Invest in 2025
One X user called Matty said, “Abusive DAC8 regulations are coming up in 5 days. If you’re a European citizen and using a Web3 bank based in a EU jurisdiction, rotate to privacy and to non-EU Web3 banks and crypto services.”
Another investor took to X to say, “DAC8 is another dystopian regulation and spying mechanism to affect EU residents.”
X user BrianEMcGrath said, “The “regulatory clarity” everyone wanted is visibility—for them. Took 15 years, but the state finally has its hooks in starting Jan 1, 2026.”
