European Union (EU) last year approved a new law called DAC8 (Directive on Administrative Cooperation), which will come into effect in 2026.
The initiative is aimed at preventing tax evasion through cryptocurrencies. As a result, crypto transactions will now be as transparent as traditional banking.
From 2026, all crypto exchanges and service providers operating in Europe will have to submit the following information about their users to tax authorities :
👉Personal information: name, address, date of birth and tax identification number (TIN).
👉Transaction information : purchases and sales, conversions from one crypto to another and transfers of large amounts.
👉Wallet information : the amount of crypto assets held by the user.
👉Deadline January 1, 2026 : From this date, exchanges will start collecting and reporting information.
The first report of the full transaction for the year 2027-2026 must be submitted to the tax office of the relevant country by 2027.
All citizens of countries included in the European Union. Even if an exchange outside the EU provides services to EU citizens, they may also have to comply with this rule. From 2026, the opportunity for "anonymous" transactions in cryptocurrencies in Europe is almost over. This is essentially a major step towards bringing the crypto market into a legal framework.
