EU DAC8 Directive on Crypto Tax Reporting Takes Effect January 1

The European Union's DAC8 directive on digital asset tax transparency takes effect January 1, formally bringing cryptocurrency activities into the EU tax reporting framework, BlockBeats reports. Under DAC8, crypto-asset service providers must collect and report detailed user and transaction data to national tax authorities, which will share this information among EU member states, placing oversight of crypto holdings, trades and transfers on par with bank accounts. The directive closes gaps where parts of the crypto economy faced less regulatory scrutiny than traditional financial accounts and requires exchanges, brokers and other crypto service providers to treat tax reporting as a core operational obligation. Companies are granted a limited transition period to adapt their systems before enforcement begins.