The EU intensifies cryptocurrency taxation, and the DAC8 Act officially comes into effect

On December 25, the European Union’s latest Digital Asset Tax Transparency Directive will come into effect on January 1, officially incorporating cryptocurrency activities into the EU’s tax reporting system. The directive, called DAC8, requires crypto asset service providers to collect and report detailed information about users and transactions to tax authorities in each country, which are then shared among EU member states. This change fills a long-standing gap, as certain parts of the crypto economy previously faced less regulatory scrutiny than traditional financial accounts. Under DAC8, tax authorities can oversee cryptocurrency holdings, transactions, and transfers with transparency similar to bank accounts. Stock exchanges, brokers, and other crypto service providers must now treat tax reporting as a core operational requirement rather than a secondary compliance matter. Although the directive takes effect on January 1, businesses have a limited transition period before enforcement to adjust their systems.