EU’s Stricter Crypto Tax Reporting Rules Take Effect January 2026: Is DAC8 A Crackdown On Crypto?

[Ben Graham]

The European Union (EU) is ready to implement DAC8 for crypto tax transparency. What is DAC8, you ask? The Directive on Administrative Cooperation is a comprehensive directive that will fundamentally change how crypto transactions are monitored and taxed. 

DAC8 was adopted by the council of EU in October 2023. Now, starting 1 January 2026, crypto exchanges will be required to collect and report detailed user and transaction data to national tax authorities. However, companies have been granted six months, until 1 July 2026, to achieve full compliance. But will DAC8 be successful in closing critical gaps in crypto tax reporting? Or is it another crackdown on crypto?

Prepare yourself for 2026 & increasing surveillance of your financial data:

DAC8 in the EU, SEC surveillance in the U.S. , mandatory KYC on every centralized on-ramp, and blockchain analysis companies tracing every transaction..

Your 8-step plan to stay alive in the new…

— CR1337 (@CR1337) December 9, 2025

To prevent tax evasion, DAC8 is meant to provide tax authorities with visibility over crypto holdings and transfers similar to what they currently have for traditional bank accounts and securities.

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Binance, Coinbase, Kraken Must Comply With EU’s DAC8

All EU crypto-asset service providers (CASPs) will have to ensure reporting systems, customer due diligence procedures and internal controls by 1 July 2026. 

Critically, DAC8 applies not only to UE headquartered firms but also any global platform serving EU residents. This basically means that the likes of Binance, Coinbase, Kraken must comply with DAC8. For individual users, DAC8 affects all EU tax residents.

And what information must be reported? The directive covers all “reportable crypto-assets,” including those used for payments or investments in BTC, ETH or other crypto. However, CBDCs and specific e-money tokens have been excluded from DAC8’s scope.

DAC8’s most powerful enforcement mechanisms is the automatic exchange of information between EU member states.

With 75 jurisdictions worldwide committing to the OECD’s Crypto-Asset Reporting Framework, similar reporting requirements are likely to emerge in other parts of the world. 

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Investors Criticise EU Crypto Tax Reporting Rules 

One X user called Matty said, “Abusive DAC8 regulations are coming up in 5 days. If you’re a European citizen and using a Web3 bank based in a EU jurisdiction, rotate to privacy  and to non-EU Web3 banks and crypto services.”

Another investor took to X to say, “DAC8 is another dystopian regulation and spying mechanism to affect EU residents.”

X user BrianEMcGrath said, “The “regulatory clarity” everyone wanted is visibility—for them. Took 15 years, but the state finally has its hooks in starting Jan 1, 2026.”

EU’s DAC8 = crypto’s integration into the existing financial surveillance stack.

Same reporting infrastructure as bank accounts. Same cross-border data sharing. Same asset freeze capabilities.

Took 15 years, but the state finally has its hooks in starting Jan 1, 2026.

The… pic.twitter.com/AHAdASWXpX

— BrianEMcGrath (@BrianEMcGrath) December 26, 2025

A Swiss company Mt Pelerin took to X to clarify that “We are a Swiss company regulated in Switzerland, so DAC8 doesn’t apply to us. DAC8 is an EU directive and only binds financial institutions located in the EU. However, Switzerland plans to implement the Crypto-Asset Reporting Framework (CARF), of which DAC8 is the EU version. Based on the latest official communication, the CARF will not enter into force in Switzerland before 2027.”

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Key Takeaways

DAC8 operates alongside but independently from the EU’s Markets in Crypto-Assets (MiCA) regulation, creating a two-pronged regulatory framework.

This cross-border data sharing enables a coordinated approach to tax enforcement, preventing users from avoiding tax obligations by moving assets or conducting transactions in different EU countries. 

 

 

The post EU’s Stricter Crypto Tax Reporting Rules Take Effect January 2026: Is DAC8 A Crackdown On Crypto? appeared first on 99Bitcoins.