New reporting obligations by DAC8

With the rise of cryptocurrency, tax authorities are facing challenges in identifying taxable transactions.
The European Commission has introduced the DAC8 directive to provide tax authorities in the EU with the necessary information to tax cryptocurrency transactions.
Currently, tax authorities have limited visibility into taxable transactions involving cryptocurrencies, as trading occurs on unregulated platforms and can involve multiple cross-border transactions in a single day.
To address this, platforms offering crypto asset services will be required to share user data, including customer information and transaction details, starting from January 1, 2027.
The reporting obligations depend on the Member State where the platform has obtained the MiCA license.
Non-compliance with DAC8 may result in significant fines, although the specific criteria for determining the amount of the fine are yet to be clarified.