EU Increases Taxation on Cryptocurrency, DAC8 Bill Officially Enforced

December 25 The European Union’s latest Digital Assets Tax Transparency Directive will go into effect on January 1, officially bringing cryptocurrency activities into the EU’s tax reporting framework. Known as DAC8, the directive requires crypto service providers to collect and report detailed user and transaction information to national tax authorities, which will then share the data across EU member states. This reform closes a longstanding loophole that had left parts of the crypto economy subject to less regulatory oversight than traditional financial accounts. Under DAC8, tax agencies can now oversee crypto holdings, trading, and transfers with the same level of transparency as bank accounts. Exchanges, brokers, and other crypto service providers must now treat tax reporting as a core operational requirement—not a secondary compliance task. While the directive takes effect January 1, businesses have a short transition period to update their systems before enforcement begins.