EU Expands Tax Transparency Rules to Crypto Assets with DAC8 Directive
The European Union has escalated its regulatory oversight of digital assets with DAC8, a new directive extending tax transparency requirements to crypto exchanges and service providers. Market participants must now disclose user transaction data to national authorities, enabling cross-border tax enforcement.
This development complements the Markets in Crypto-Assets (MiCA) framework approved last April, creating parallel regimes for taxation and market supervision. While DAC8 closes gaps in crypto tax reporting, its implementation has sparked debate among industry participants about compliance burdens.
The rules position the EU at the forefront of global crypto asset monitoring, applying traditional financial reporting standards to digital asset transactions for the first time.
