The EU intensifies taxation on cryptocurrencies, and the DAC8 legislation officially comes into effect

The EU's latest directive on tax transparency for digital assets will come into effect on January 1, officially incorporating cryptocurrency activities into the EU's tax reporting system.

The directive, named DAC8, requires crypto asset service providers to collect and report detailed information about users and transactions to national tax authorities, which will then share this data among EU member states. This reform addresses a long-standing gap, as certain parts of the crypto economy have faced less regulatory scrutiny than traditional financial accounts. Under DAC8, tax authorities can regulate the holding, trading, and transfer of cryptocurrencies with the same transparency as bank accounts. Exchanges, brokers, and other crypto service providers must now view tax reporting as a core operational requirement rather than a secondary compliance matter. Although the directive takes effect on January 1, businesses have a limited transition period to adjust their systems before enforcement.