TLDR:
- DAC8 requires EU crypto exchanges to report all transactions to tax authorities starting in 2026.
- User data includes full name, address, TIN, and date/place of birth for individuals.
- Reportable crypto transactions cover fiat trades, swaps, transfers, and intermediary-facilitated payments.
- Both domestic and cross-border activity will be automatically shared across EU member states.
The European Union has finalized DAC8, a new rule requiring crypto exchanges and wallets to report user activity. The regulation targets both domestic and cross-border transactions, aiming to curb tax evasion.
Reportable activities include trading, transfers, and payments using crypto-assets. DAC8 will come into effect in 2026, imposing strict data collection and reporting requirements on regulated entities.
DAC8 Reporting Requirements for Crypto Exchanges
Under DAC8, regulated crypto entities must collect extensive user identification data.
Reportable personal information includes full names, addresses, tax residency, and Tax Identification Numbers (TINs). For individuals, date and place of birth are also required.
Additionally, entities must include crypto account identifiers, such as hosted wallet addresses.
Transaction-level reporting is equally detailed. Exchanges must submit information on crypto-asset type, units involved, and transaction date.
Transaction type, such as deposit, withdrawal, or exchange, must be documented. Gross transaction value in fiat currency is also required per user and per asset type.
The regulation applies to all crypto-asset service providers (RCASPs).
Entities acting as intermediaries, agents, or tool providers must report transactions. Both domestic and cross-border transactions fall under DAC8’s scope. This broad coverage ensures tax authorities receive comprehensive visibility into crypto activity.
Annual reporting will begin in 2026, covering all relevant transactions from the prior year. Entities must ensure secure data handling and compliance with EU privacy laws.
Non-compliance could lead to penalties and heightened scrutiny from national authorities.
Implications for EU Crypto Users and Exchanges
DAC8 will affect user privacy, as exchanges must collect and submit detailed personal data.
Users relying on EU identification or addresses will automatically be included in reporting. Avoiding KYC platforms or using non-EU identifiers could bypass reporting, according to guidance shared on social channels like Stallion’s X.
The rule also standardizes reporting across EU member states.
Authorities can automatically share data between countries, enhancing enforcement capabilities. This could affect individuals trading or transferring crypto across borders.
Exchanges are expected to upgrade compliance systems to handle new reporting demands efficiently.
Crypto wallets and decentralized platforms must also adapt if they qualify as RCASPs. Any transfer mediated by these platforms could become reportable.
Firms operating in the EU may face increased operational costs to maintain reporting accuracy. Compliance infrastructure is likely to become a key priority before the 2026 implementation.
DAC8 is part of the EU’s broader effort to regulate digital finance.
While less publicized than chat control measures, it represents a major surveillance mechanism. Its introduction signals that crypto regulation will increasingly target user transparency and tax compliance.
