At the beginning of January 2026, a new tax-reporting directive of the European Union came into force. Known as DAC8, it extends existing tax-reporting rules to crypto assets and introduces new reporting obligations for crypto-asset service providers.

The directive covers even basic operations, such as exchanging fiat currency for cryptocurrency, converting one crypto asset into another, or transferring crypto holdings via regulated platforms.

Extending existing tax rules to crypto assets

DAC8 does not create an entirely new tax framework. Instead, it expands previous EU tax-reporting directives to include crypto assets, aligning them with other financial instruments that were already subject to automatic reporting.

In practice, this means that crypto transactions are now treated in a similar way to trades involving stocks, bonds, or other securities.

What changes for ordinary crypto users

For most crypto users, DAC8 does not introduce fundamentally new obligations. Users must allow their crypto-asset service provider to properly identify them so the provider can report relevant transaction data to national tax authorities.

This requirement already applied to users of traditional investment platforms before January 1, 2026. In this sense, DAC8 can be compared to electronic sales records, but adapted to the crypto sector.

Why the EU introduced DAC8

The main objective of DAC8 is to make it easier for tax authorities to verify whether profits from crypto trading have been correctly declared in tax returns.

Before DAC8, authorities could request information about specific individuals, but the process was slow and administratively demanding. Under the new rules, crypto service providers must submit transaction reports automatically, significantly improving transparency.

New obligations for crypto service providers

The most significant changes apply to crypto-asset service providers. From January 2026, they are required to submit annual reports detailing their clients’ crypto transactions.

Failure to comply may result in penalties under national law. In the Czech Republic, fines can reach up to CZK 1.5 million (approximately €62,000).

Transition period and enforcement

Although DAC8 formally applies from January 1, 2026, crypto firms have a transition period. Providers have until July 1, 2026, to fully adapt their reporting systems, customer due diligence processes, and internal controls.

After this deadline, incomplete or missing reports may trigger sanctions. Member states are also newly required to report to the European Commission on the effectiveness of cooperation in combating tax evasion and avoidance linked to crypto assets.

Sources:

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.zakonyprolidi.cz/media2/file/2405/File67493.pdf%3Fattachment-filename%3D7866688-2024-04-24-duvodova-zprava-7889483.pdf&ved=2ahUKEwiTlYfDpPqRAxXHR_EDHZ_fKm44ChAWegQIHhAB&usg=AOvVaw0Ut0GcJo6HbQb-ME0exPKm

https://cryptorank.io/news/feed/3423c-new-crypto-laws-trigger-a-strict-60-day-countdown-that-forces-providers-to-freeze-your-trading-ability

https://cryptoslate.com/new-crypto-laws-trigger-a-strict-60-day-countdown-that-forces-providers-to-freeze-your-trading-ability/