EU Crypto Tax Reporting to Launch in January, Non-Compliance Could Lead to Asset Seizure

On December 24, CoinDesk reported that the European Union’s latest digital asset tax transparency regulations will take effect on January 1, 2026—marking a major shift in how the bloc regulates crypto activities. Known as DAC8, the rule builds on the EU’s longstanding framework for tax administrative cooperation, expanding its scope to cover crypto assets and service providers. Under the new rules, crypto service providers (including exchanges and brokers) must collect and submit detailed user and transaction data to their national tax authorities, which will then share this information with other EU member states’ tax agencies. For crypto users, the enforcement implications are more stringent. If tax authorities uncover tax avoidance or evasion, DAC8 allows local regulators—with support from their counterparts in other EU countries—to take action. This cross-border collaboration grants the authority to freeze or seize crypto assets tied to unpaid taxes, even if those assets or platforms are based outside the user’s home country.