Council of the EU Adopts DAC8 Crypto Tax Reporting Rule

The eighth version of the Directive on Administrative Cooperation (DAC8), which focuses on cryptocurrency tax reporting, was officially adopted by the Council of the European Union on October 17. This regulation will take effect following its publication in the Official Journal of the EU.

The DAC was established in May 2023, coinciding with the implementation of the Markets in Crypto-Assets (MiCA) legislation. The designation of “eight” in the updated program’s title signifies it as the eighth iteration, with each previous directive addressing different facets of financial oversight. DAC8 is designed to empower tax authorities to monitor and assess all cryptocurrency transactions conducted by individuals or entities across any member state of the EU.