The EU Parliament overwhelmingly backs DAC8 crypto tax reporting regulation.
On September 13, during a plenary session held in Strasbourg, France, European Parliament lawmakers cast an overwhelming vote in favor of the eighth rendition of the Directive on Administrative Cooperation, known as DAC8, which pertains to cryptocurrency tax reporting. A remarkable 535 members expressed their support, while a mere 57 opposed it. Additionally, 60 lawmakers chose to abstain from voting.
Heads up: The European Parliament plenary adoption of the #DAC8 is happening today📣
As a reminder: DAC8 is an instrumental legislation designed to further harmonise the crypto-assets market, complementing #MiCA and #AML regulations.
What are your thoughts on the DAC8 adoption? pic.twitter.com/YRFZSBJYwp
— European Crypto Initiative (@EuCInitiative) September 13, 2023
Within the European Union’s official documents, DAC8 emerges as a pivotal instrument, bestowing tax authorities with the formidable capability to meticulously monitor and appraise every cryptocurrency transaction carried out by both individuals and entities residing within the member states.
“On 8 December 2022, the European Commission proposed to set up a reporting framework which would require crypto-asset service providers to report transactions made by EU clients. This would help tax authorities to track the trade of crypto-assets and the proceeds gained, thereby reducing the risk of tax fraud and evasion.”
The passage of DAC8 reached its ultimate milestone during the plenary session on September 13. Looking ahead, EU member states are granted a window until December 31, 2025, within which they must implement these regulations. DAC8 will officially come into effect on January 1, 2026.
As previously reported by Cointelegraph, the inception of DAC dates back to May 2023, following the enactment of the Markets in Crypto-Assets (MiCA) legislation. The “8” in the current program’s title signifies its eighth version, with each prior directive addressing distinct aspects of financial oversight.
DAC8, in its current configuration, aligns closely with the Crypto-Asset Reporting Framework (CARF) and MiCA’s legislative provisions. Notably, it encompasses all cryptocurrency asset transactions within the EU.
Critics of DAC8 argue that it lacks distinctive features compared to CARF and, in their view, erodes the autonomy of individual member states.
Max Bernt, who serves as the Chief Legal Officer at Blockpit, shared his perspective in an analysis earlier this year. He highlighted a significant concern regarding the obligation of Reporting Crypto Asset Service Providers (RCASPs) to assess, on a case-by-case basis, whether a transferred crypto asset warrants reporting. Bernt also expressed reservations about the potential for “duplicate reporting” as lawmakers navigate the complexities of existing regulations alongside those slated for implementation.
