The European Union has launched the DAC8 Directive, which strengthens tax controls over cryptocurrencies and requires exchanges to share user data with authorities.

• Transaction information will be automatically exchanged between all EU countries.

The document DAC8 expands government powers and allows for the seizure or blocking of digital assets if taxes are not paid. At the same time, the level of financial privacy for cryptocurrency owners is significantly reduced.

DAC8 is the eighth version of the Directive on Administrative Cooperation, a system long used in the EU for the exchange of tax information. Now, its application has officially been extended to crypto assets and the companies that work with them.

What exactly is changing for the crypto market?

The main requirement of DAC8 concerns crypto services. Exchanges, brokers, and other service providers must collect data on clients and their transactions. This includes users' personal information and a complete transaction history. This information is transmitted to national tax authorities and then automatically exchanged between all EU countries.

Data collection for 2026 has already begun. Crypto companies have been given until July 1 to comply with the new regulations. Fines are imposed for non-compliance.

EU authorities are calling DAC8 a step toward greater transparency. However, many market participants believe the directive undermines one of the fundamental principles of cryptocurrency—the right to privacy.

Bitcoin enthusiast and crypto educator Heidi Chakos wrote on social media that tax authorities now have automatic monitoring of users' digital assets. According to her, privacy is more important than ever.

Experts note that the consequences of DAC8 will affect not only EU residents but also users outside the EU. Lawyers working with crypto projects are already assessing the impact of the new rules on ordinary investors. According to Antonia Eilander, a corporate and tax lawyer at the Dutch firm O2K, the directive significantly increases tax transparency for users in all 27 EU countries. Now, every regulated platform is required to identify clients by name, address, and tax identification number, and then annually report this data to the government.

This means that cryptocurrency transactions will be much more likely to be matched with tax returns, even if the user doesn't withdraw funds to fiat, the lawyer explains.

DAC8 doesn't introduce new reporting requirements for individuals or automatically deduct taxes. However, it significantly reduces the chances of cryptocurrency transactions going undetected.