EU Adopts DAC8 – New Cryptocurrency Tax Reporting Rule To Take Effect Soon
European Union (EU) finance ministers approve new regulations requiring cryptocurrency firms to share data on customer cryptocurrency holdings with tax authorities.
On October 17, the EU adopted the Eighth Directive on Administrative Cooperation (DAC8), which is set to go into force in 2024. The directive will be published in the Official Journal, the European Union's gazette of legal acts, and enter into effect on the 20th day following publication.
The directive, DAC8, issued a new guideline for crypto-asset service providers (CASPs) to report certain information about their clients' transactions to the tax authorities of the EU member states in which the clients reside.
Proposed last year and recently approved, the directive aims to enhance tax transparency and combat tax evasion, particularly in cases where high-net-worth individuals use crypto assets to mitigate tax liability.
The tax rules, officially named the Eighth Directive on Administrative Cooperation (DAC8), were initially submitted to the European Commission on December 8, 2022.
In May 2023, the DAC8 was approved after the Markets in Crypto-Assets (MiCA) legislation was enacted. The "eight" in the name signifies that it's the eighth version of such directives, with each previous one addressing different facets of financial oversight.
The DAC8 aims to complement existing regulations regarding crypto markets and anti-money laundering rules, thereby aiming to provide a comprehensive framework for regulating the crypto industry within the EU. It will apply to all CASPs based in the EU, regardless of their size, and will also encompass financial institutions dealing with electronic money and central bank digital currencies.
DAC8's objective is to empower tax
Read more on cryptonews.com
