EU's DAC8 Tax Directive to Take Effect on January 1, 2026, Enforces OECD Crypto Reporting Framework

As reported by BlockTempo, the EU's DAC8 directive, a new digital asset tax transparency regulation, will officially come into effect on January 1, 2026. The directive marks a major shift in EU regulatory approach by incorporating crypto asset transactions into the automatic information exchange system to enhance tax transparency and combat tax evasion. It implements the OECD's Crypto-Asset Reporting Framework (CARF), requiring all crypto service providers serving EU residents to report user identities, tax residency, account balances, and transaction details. The first reports are expected in 2027, and the directive applies extraterritorially to non-EU providers with EU users. The regulation complements the EU's Markets in Crypto-Assets (MiCA) framework and is expected to increase compliance costs for service providers while offering clearer regulatory clarity.