Council of the EU adopts DAC8 crypto tax reporting rule
The eighth iteration of the Directive on Administrative Cooperation (DAC8) — a cryptocurrency tax reporting rule — was formally adopted by the Council of the European Union on Oct. 17. The regulation will enter into force after publication in the Official Journal of the EU.
The DAC was sanctioned in May 2023 following the enactment of the Markets in Crypto-Assets (MiCA) legislation. The inclusion of the number eight in the revised program’s name indicates that it is the eighth version, with each previous directive dealing with distinct aspects of financial supervision. DAC8 aims to grant tax collectors the jurisdiction to monitor and evaluate every cryptocurrency transaction carried out by individuals or entities within any other member state of the EU.
In its present configuration, DAC8 complies with the Crypto-Asset Reporting Framework (CARF) and the regulations specified in MiCA, effectively encompassing all cryptocurrency asset transactions within the European Union.
In September, DAC8 received overwhelming support in the European Parliament , with 535 votes for and just 57 against.
Related: European regulator: DeFi comes with significant risks as well as benefits
United States regulators are also pushing hard to implement the crypto tax collection procedures as soon as possible. On Oct. 11, seven members of the U.S. Senate called on the Treasury Department and the Internal Revenue Service to advance a rule imposing certain tax reporting requirements for crypto brokers “as swiftly as possible.” They criticized a two-year delay in implementing crypto tax reporting requirements, which are scheduled to go into effect in 2026 for transactions in 2025.
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