The European Union has implemented DAC8, expanding automatic exchange of tax information to cryptoassets across all member states and linked jurisdictions.

Under the directive, crypto platforms must identify users, determine tax residency and report aggregated annual activity for each asset class to authorities.

Scope of reporting

The rule covers a broad range of service providers, including exchanges, brokers, custodial wallets and money-transfer services that interact with EU residents.

Obligations extend to providers operating from outside the Union when they serve taxpayers resident within EU member states.

What data must be collected

Platforms are required to verify user identity, capture tax-residence status and gather transactional information on crypto flows and balances.

• Reports must include crypto-to-fiat conversions and token transfers, including withdrawals to personal wallets.
• Income from staking, rewards and airdrops falls within the reporting perimeter and must be recorded.
• Authorities receive aggregated yearly figures per asset rather than individual trade-level detail in all cases.

Practical implications for providers and taxpayers

Service operators will need enhanced onboarding procedures, compliance systems and secure data-retention processes to satisfy cross-border reporting rules.

Taxpayers should expect their crypto activity to be visible to national authorities and matched against bank records and tax declarations.

Enforcement and consequences

Tax administrations will be able to reconcile reported crypto information with other financial data, increasing detection of undeclared income and discrepancies.

Failure to comply or attempts to conceal taxable income may result in reassessments, fines, account restrictions and other legal measures by competent authorities.