EU One Step Closer to Adopting New Rules on Sharing Crypto Tax Data

DAC8 proposes that crypto asset service providers report client transactions to counter tax-related criminal activities such as tax evasion

article-image

symbiot/Shutterstock modified by Blockworks

share

European Union ambassadors unanimously support the eighth amendment (DAC8) to the Directive on Administrative Cooperation, as confirmed by Benjamin Angel of the European Commission.

Loading Tweet..

DAC8 proposes that crypto asset service providers report client transactions — both cross-border and domestic — in the hopes of countering tax-related criminal activities such as tax evasion.

Officials proposed the amendment in December of last year to address the fact that crypto assets were not included in the former framework.

“Trading on the crypto-market takes place without the involvement of classic financial institutions, such as banks, and without a central authority…The often high volatility of crypto-asset value does not make an accurate tax charge any easier,” which then makes it difficult for tax authorities to track transactions, the EU argued

Essentially, crypto asset service providers would make EU client transactions public to the tax authorities of the union’s respective member states.

With ambassador support, DAC8 could take effect before the Crypto-Asset Reporting Framework (CARF) is enacted in early 2026. 

Now that the EU ambassadors have supported DAC8, the Council of Economic and Financial Affairs will take a general approach before it is adopted. 

The EU recently passed the Markets in Crypto Assets regulation in April. It still awaits a formal council vote to finalize the regulation, which is expected on May 16. 

Though the framework will not be fully in effect until 2024, industry participants have praised the EU for its push to provide regulatory clarity.

The US has not received that same praise. In fact, US crypto companies, such as Coinbase, have claimed that the SEC is dragging its feet on regulatory clarity. Similarly, the US Chamber of Commerce has alleged that the SEC could be hurting innovation and economic growth.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Upcoming Events

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research

article-image

New legal developments and renewed US-China tensions have traders wondering if a “TACO Tuesday” is in the cards this week

article-image

The ETF Store president Nate Geraci expects the SEC to approve spot solana ETFs — and staking within SOL and ether ETFs — in 2025

article-image

Yuga cofounder Greg Solano says it’s time to be thoughtful, ‘but also kinda fucking ruthless’

article-image

The stablecoin issuer now plans to offer 32 million Class A common stock shares at a price of up to $28 each

article-image

Let’s go whale watching, Bitcoin style: Investigating the mysterious “12ib7” wallet now worth $3.2 billion