Council of the European Union Adopts Eighth Directive on Administrative Cooperation for Cryptocurrency Tax Reporting

Council of the European Union Adopts Eighth Directive on Administrative Cooperation for Cryptocurrency Tax Reporting

Crypto News – The Council of the European Union formally approved the eighth revision of the Directive on Administrative Cooperation (DAC8) on October 17th, focusing on cryptocurrency tax reporting. The regulation is set to become effective upon publication in the Official Journal of the EU.

DAC8 was ratified in May 2023 following the enactment of the Markets in Crypto-Assets (MiCA) legislation. The numeric designation ‘eight’ in the updated program’s title signifies its eighth version, with each prior directive addressing distinct aspects of financial oversight. DAC8’s objective is to empower tax authorities to oversee and assess every cryptocurrency transaction conducted by individuals or entities across other EU member states.

In its current form, DAC8 adheres to the Crypto-Asset Reporting Framework (CARF) and the stipulations outlined in MiCA, comprehensively covering all cryptocurrency asset transactions within the European Union.

During September, DAC8 garnered extensive support in the European Parliament, with an overwhelming 535 votes in favor and only 57 opposed.

In the United States, regulatory authorities are actively pushing for the prompt implementation of cryptocurrency tax collection procedures. On October 11th, seven members of the U.S. Senate urged the Treasury Department and the Internal Revenue Service to expedite the enactment of a rule enforcing specific tax reporting requirements for crypto brokers ‘as swiftly as possible.’ They expressed concerns about a two-year delay in implementing these reporting requirements, which are slated to take effect in 2026 for transactions occurring in 2025.