The Council of the European Union formally adopted the eighth iteration of the Directive on Administrative Cooperation (DAC8), a pivotal cryptocurrency tax reporting rule. This regulation recently secured overwhelming support in the European Parliament. Now, it is set to enter into force after its publication in the Official Journal of the EU.
DAC8 Origins: A Product of MiCA Legislation
The genesis of DAC8 traces back to May 2023, following the enactment of the Markets in Crypto-Assets (MiCA) legislation. Notably, the inclusion of the number eight in the directive’s name signifies its evolution through distinct iterations, each addressing unique facets of financial supervision.
Further, DAC8 represents a concerted effort to empower tax collectors with the jurisdiction to meticulously monitor and evaluate every cryptocurrency transaction occurring within any EU member state. Aligned with the Crypto-Asset Reporting Framework (CARF) and MiCA regulations, the directive effectively encompasses all cryptocurrency asset transactions within the European Union.
European Parliament’s Resounding Support
September witnessed a resounding show of support for DAC8 in the European Parliament. This was with an overwhelming 535 votes in favor and a mere 57 against. This strong mandate underscores the shared commitment to enhancing regulatory measures within the realm of cryptocurrency.
Global Momentum: U.S. Senators Urge Swift Action
Beyond European borders, the momentum for crypto tax regulation is gaining traction. In a parallel development, seven members of the U.S. Senate, on October 11, urged the Treasury Department and the Internal Revenue Service to expedite the implementation of crypto tax collection procedures.
Further, the senators expressed concern over a two-year delay in enforcing tax reporting requirements. Now, it is slated to take effect in 2026 for transactions occurring in 2025.