QUICK SUMMARY
As from 1st January 2026, the eight amendment to the Directive on Administrative Cooperation in Direct Taxaction (commonly referred to as "DAC 8") came into force across all European Union Member States.
DAC 8 was introduced in response to the accelerated increase in crypto investments over recent years. Indeed, the overarching objective of DAC 8 is to bridge the gap between traditional financing and the digital asset economy, allowing tax authorities to monitor and assess transactions in crypto in the same manner that bank accounts and traditional investments are presently assessed.
Through the introduction of DAC 8, crypto service providers must disclose detailed records of user activity including information about the users and the transactions. This is with the aim of improving visibility into crypto transactions and ensuring accurate taxation of such crypto related income.
