EU DAC8 takes effect on January 1, 2026, marking a targeted expansion of EU digital asset tax transparency across the bloc. Building on existing tax cooperation, the regime extends reporting duties to crypto asset service providers such as exchanges and brokers, requiring them to collect and file detailed information about users and transactions with national tax authorities. The arrangement enables streamlined inter‑state data sharing to bolster compliance and deter tax avoidance within the single market.
From a compliance perspective, firms must implement robust data collection and reporting pipelines, with careful attention to KYC/AML controls and privacy safeguards. DAC8 outfits tax authorities with enhanced cross-border enforcement powers, including potential fines, asset freezes, or confiscation tied to unpaid taxes, even when assets reside outside a user’s home jurisdiction. Providers should align operations to the new standards to maintain service continuity while supporting the EU’s move toward greater fiscal transparency.